Myer boss Bernie Brooks has blamed Australia's high wages, rents, taxes and utility costs for the department store's tough year.
The department store giant says tough conditions in the retail sector will continue into next year, as the tough economic outlook for Australia further impacts consumer confidence and spending.
Myer's full year net profit has fallen 8.7 per cent to $127.2 million, a result that came on the back of higher selling expenses.
Against that backdrop, Mr Brookes urged the new Abbott government to look at closing the GST loophole that allows online shoppers to spend up to $1000 on overseas goods without paying tax.
"Retail continues to be the biggest private employment sector in the country,' Mr Brookes said.
''All Australian retailers are being impacted by rising employment costs, escalating occupancy and utility costs, and a GST loophole providing an unfair advantage to foreign retailers. The sector would benefit from reform to help drive productivity and become more competitive in an increasingly global marketplace.''
Mr Brookes said the year ahead will be tough for the retailer, and does not expect market conditions to improve until 2015.
Myer's sales revenue for the year grew nearly 1 per cent, to $3.14 billion.
The company declared a final dividend of 8 cents a share, fully-franked, down on last year's 9 cents. It will be paid on November 14 to shareholders on the register at September 30.
In the year to July 27, Myer posted a net profit of $127.21 million – down on the previous year's $139.37 million.
Total sales revenue was $3.145 billion, a 0.8 per cent increase on the $3.119 billion recorded in the previous year.
''Our NPAT [net profit after tax] result was impacted by cost pressures associated with labour and occupancy (utilities, rates and taxes), planned investment in growth initiatives including omnichannel and Myer Exclusive Brands, escalating depreciation charges associated with previous capita investments and the significant refurbishments of three of our top 20 stores,'' said Mr Brookes in a statement to the ASX.
''We have continued to execute our five-point plan over the last year whilst having an eye to the future and adapting the business to capitalise on the changing structure of retail," said Mr Brookes.
"We are pleased to have achieved positive sales growth of 0.8 percent for the full year despite sales momentum slowing in the second half, particularly in May and June.''
Mr Brookes said the company's three new stores were performing well.
"During the year we opened three new stores in Fountain Gate, Townsville and Shellharbour with all stores trading well and enjoying significant local community support.
Myer also announced it will take 100 per cent ownership of fashion label sass + bide, and an extension of its sponsorship of horse racing events.
"We were delighted to have recently announced significant partnerships with the Victorian Racing Club, Australian Turf Club, as well as the extension of our contract with Laura Dundovic, as one of our strong team of Ambassadors.
"We continue to adapt our business in line with customer expectations to meet current and future challenges. We have changed processes and systems to improve productivity leveraging our IT investments. We are responding to the ways our customers now shop with us through the execution of our omni-channel strategy and revitalising our store environments," he said.
Invast chief market analyst Peter Esho said Myer's guidance for 2014 was fairly soft, with the cost of doing business expected to rise another 4-5 per cent.
"There were hopes that the business will turnaround its fortunes in the very difficult retail space."
Myer said that first-half sales in the 2014 financial year would be negatively impacted by store refurbishments in Adelaide, Indooroopilly and Miranda.
However, it said second-half sales would be improved by the completion of two of these refurbishments and contributions from new stores that were opened in the last financial year.
"This comes at a cash cost which means a high dividend payout ratio is not sustainable unless revenue starts to rise," said Mr Esho
"Overall, there is perhaps not enough good news here to help offset the overarching challenges and we think Myer will struggle to see its share price rise above $3 until revenue really starts to take off."
Sydney Morning Herald with wires