Myer will continue to cut back on discounting despite the strategy contributing to a fall in its January sales.
The retailer's comparable store sales grew by just 0.3 per cent in the six months to January 28, as sluggish trade during the stocktake sale period offsetting an improved performance during the Spring racing carnival and Christmas.
Chief executive Richard Umbers said sales were particularly soft during January, and lifted only slightly in February.
"January was the low point; with February seeing an improvement," he told AAP.
"The indications are that it is going to improve but it is a bit too early to say what March is going to do yet."
"We have been deliberately trying to reduce our level of dependence on discounting which of course, given January is a discount-driven month for the market, it is not too surprising it was having less of an impact on customers."
He said shoppers had spent most of their "sales money" on discounts during November and December, and by the time January arrived they were experiencing "discount fatigue."
The fact Myer managed to lift its comparable sales in the first half of its fiscal year, despite heavy discounting from rivals and patchy consumer confidence, was a positive sign, Mr Umbers added.
Total sales in the half were down 0.6 per cent from a year earlier at $1.78 billion, and lower operational costs helped boost Myer's net profit by five per cent to $62.8 million.
The company's pre-tax earnings were up 2.7 per cent, and Myer expects annual pre-tax earnings growth to exceed sales growth, as long as January's sales slump does not return.
Myer shares were down 5.75 cents, or five per cent, at a four-month low of $1.0825 shortly before the close of trade.
Mr Umbers said Myer will stick to its shift away from aggressive discounts, and will focus on boosting marketing and investment in its private labels, particularly Piper and Blaq.
Myer has shed many of its private labels and brought in more popular brands as concession stalls - outlets inside the department store - during the past 18 months of the group's turnaround strategy.
The higher mix of concession stalls with a focus on popular brands, including Top Shop, John Lewis and Veronica Maine, contributed to Myer's reduced operational costs.
IG market strategist Evan Lucas said Myer's like-for-like sales were not strong, and its financial esults showed it was "grinding" through its turnaround strategy while still facing massive challenges from increased competition from major international retailers.
MYER'S UNDERWHELMING HALF YEAR PERFORMANCE:
* Net profit up 5.3pct to $62.8m
* Sales revenue down 0.6pct to $1.78b
* Interim dividend up 1 cent to 3 cents, fully franked.
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