Myer to cut permanent staff

Department store chain Myer says it'll offer voluntary redundancies at 42 of its stores as part of a bid to improve service during peak seasons.

Retail giant Myer will reduce the number of permanent staff through a voluntary redundancy program. (AAP)

Department store chain Myer will cut the number of its permanent staff in favour of casual workers.

The department store chain says the move is designed to give it the flexibility to reduce staff hours during quieter periods.

A Myer spokesman says voluntary redundancies will be offered at 42 stores.

"We are changing the mix of permanent and casual team members to achieve greater flexibility, so we can align our workforce with customer demand and adapt to changes in store traffic flows," he said.

He said more casual workers would provide more flexible hours during peak periods, including Christmas and stocktake season, and would lead to an improvement in customer service.

Morningstar analyst Farina Parsons said getting the balance right between permanent and casual workers would be a tricky task.

"To get that rostering right is going to be very essential," she said.

"It would be dangerous to get rid of too many staff because shedding too many would affect the service and they can't afford to do that in such a competitive environment."

Myer has been struggling with declining sales and is in the middle of a major overhaul to turn around the business.