Department store chain Myer has shown its chief executive the exit, just days after the latest in a string of profit warnings.

The board approached Richard Umbers after the company issued its third warning since July.

Myer chairman Garry Hounsell said he had the "unfortunate" role of having the conversation with Mr Umbers.

"It was an incredibly difficult decision and discussion for me and I think it was very, very difficult for him well," Mr Hounsell said.

"It was a mutual agreement that he should step down but the board took decisive action in having those discussions with Richard."

Mr Hounsell has been appointed executive chairman as the search for a new CEO commences.

Last week, Myer revealed its stocktake sale had failed to attract shoppers, with sales falling 6.5 per cent in January compared to the previous year.

Shares hit a fresh all-time low on the news and the tumble continued as brokers downgraded the stock following the announcement.

The company said first-half profit was now expected to come in between $37 million and $41 million, down from $63 million in the same period a year earlier.

Mr Hounsell said the result was "not acceptable."

"We need a fresh approach because what we're doing at the moment doesn't seem to be working."

Mr Umbers took up the top job in Myer in 2015 and led its 'new Myer' turnaround strategy, but the retailer failed to hit sales targets.

Myer also flagged a potential impairment charge in last week's update but Mr Hounsell would not be drawn on any further details of the writedown today.

"I don't believe there's any risk of going into administration at this particular point in time," he said.

Shake-up amid shareholder scrutiny

The change at the top comes amid continuing calls for a board spill from veteran retailer and major Myer shareholder Solomon Lew.

The ongoing spat between the board and Mr Lew continues, with Mr Lew's Premier Investments recently requesting Myer's shareholder register to push for an extraordinary general meeting.

Today, Mr Hounsell refused to say whether Mr Lew or other shareholders had been consulted on the leadership change.

"If I don't succeed, then the shareholders can determine what they want to do with me," said Mr Hounsell.

'Impatient' chairman to lead retailer during CEO search

Mr Hounsell has only recently joined the Myer board, moving into the role of chairman in November, succeeding Paul McClintock.

He currently serves as chairman of travel company Helloworld and also sits on the boards of Dulux and Treasury Wine Estates.

When questioned about his own shopping habits today, Mr Hounsell said he was "old-fashioned" and does not buy clothes online, but stressed that would not impact his ability to lead a retailer in the changing landscape.

"I shop two or three times a year, I'm a very different kind of individual, so what it is when I shop is completely irrelevant to the public," he said.

"There are structural issues facing the industry, but there are structural features facing lots of industries."

In a statement to the ASX, Mr Hounsell said the board was "impatient" for a turnaround.

"This announcement reflects my desire to drive, first-hand, the urgency required to deliver shareholder value."

Mr Umbers will be paid for a 12-month notice period and Mr Hounsell will also receive a salary while in the executive chairman role.

At 1.15pm (AEDT) Myer shares were more than 5 per cent higher at 55.25 cents.