Increased costs to hinder Myer sales DEPARTMENT store group Myer has warned that first-half profit will be down as increased labour and utilities costs combine with store refurbishments to increase costs and erode sales. Chief executive Bernie Brookes said costs of doing business would rise by up to 5 per cent this financial year. However, a more disciplined approach to discounting meant gross margins were expected to expand by 40 basis points, following a similar move over the past financial year when they hit 41.7 per cent.