Myer is committed to dedicated clearance floors in its department stores despite major shareholder Solomon Lew fuming that the old stock would be more at home in a Salvation Army op shop.
Myer executive Tony Sutton told investors at Wednesday's strategy day that the clearance floors represented a foray into the $4.6 billion "off-price" retail market.
Mr Sutton said off-price was about selling wanted brands at significant discounts, a strategy that has brought success to the likes of DFO and US retailer TK Maxx.
"We see this as a new potential market for Myer and sits adjacent to Myer's current proposition," Mr Sutton said.
The commitment flies in the face of Myer's promises earlier this year to move away from heavy discounting.
Mr Sutton, the executive general manager for stores, said sales for the eight Myer stores piloting the clearance floors over the past six weeks had been positive.
Sales in the last full financial year dropped 2.3 per cent across the eight stores, but - excluding online sales - they had risen 3.7 per cent since clearance floors were introduced.
Mr Sutton said clearance floors had helped US department stores such as Nordstrom boost their sales.
But Mr Lew - the chairman of major shareholder Premier Investments - has been critical of the clearance floors, saying in September the apparel was up to three years old and belonged "in the Salvation Army".
