David Jones on Wednesday unveiled the final stage of the $50 million revamp of its Bourke Street flagship store in Melbourne, which includes innovative spaces for luxury brands and a world-class sunglasses destination on the ground floor, as well as a pop-up bar on level two. It follows the launch of a new luxury menswear offering in July and new luxury womenswear and accessories floor in April, and brings the three-year refurbishment project – the biggest in the history of the Bourke St
Street store – to a close.
David Jones CEO Scott Fyfe said the retailer drew on lessons learned from the revamp of its Elizabeth Street flagship store in Sydney in 2019 to ensure the Melbourne project was a success.
“Department stores are big boxes, and you’ve got to have an experience on every floor,” he told Inside Retail. “We’ve learned from Sydney, where we’ve got 12 floors – we’ve got five in Melbourne – that we have to have a different activation on every floor. That’s been one major learning for us.”
Another one was around the brand assortment. Like the Sydney store, the Melbourne flagship is firmly focused on the luxury and premium end of the market. The new sunglasses destination is an example of this, offering the latest collections from the likes of Gucci, Chloe, Balenciaga, Saint Laurent, New Bottega and Chanel.
“As people have saved money through lockdowns and pandemics, we’re actually seeing people coming back strongly in trading with us,” Fyfe said. “They not only want new products, they want services and experiences. For us, it’s about curating [all] that together.”
Now that David Jones has completed the revamp of its Sydney and Melbourne stores, it’s looking to do the same in other capital cities in Australia.
“We’d love to get into some other capital cities, and that’s what our plan is. We just need to make sure we do it in a prudent way and pick the right locations,” he said.
A good Christmas
David Jones’ investment in luxury and experience comes at a time when many retail experts are warning of tough economic conditions and a decrease in consumer spending, but Fyfe is confident that the business is in for a strong Christmas.
“David Jones is the destination for Christmas shopping, so we’re really confident with our new inspiring marketing campaign for Christmas this year, which is great,” he said.
While he said the retailer is preparing itself for challenges ahead, he is optimistic about the business’ future.
“We’ve got a clear vision and strategy for the next three years – we want to inspire customers like no other. That said, we’re very aware of the economic headwinds that are coming,” he said.
Beyond the new and improved store environment, David Jones has also started offering fashion resale and rental through partnerships with Blue Spinach and GlamCorner, respectively, and it has stepped up its support for First Nations designers and models.
Fyfe sees these initiatives as being key to the retailer’s growth going forward.
“We know they are appealing to a younger demographic. We can see it through our data,” he said. “Younger customers don’t want to own things, it’s the Uber impact on retailing. People want to rent, people want to experience, and David Jones is a brand that can offer that.”
Fyfe is also passionate about making David Jones a more sustainable business.
“I truly believe that sustainable retailing can be profitable retailing,” he said. “When I worked at Marks & Spencer, we put in one of the market-leading and world-leading sustainability projects called Plan A, and I was one of the pioneers on that, so I was taught very early in my career that sustainable retailing is the way forward.”
Fyfe has carried that lesson through to his career in Australia. During his tenure as CEO of Country Road Group, the Country Road brand became the first store in the southern hemisphere to receive five stars from the Green Star Design Review.
As CEO of David Jones, Fyfe is phasing out the use of plastic bags. By the end of this year, the retailer will no longer use any plastic bags, saving the equivalent of a 747 in plastic from going to landfill.
“I’m hugely proud of that,” he said. “It’s what people expect a brand like David Jones to do.”
At a time when businesses around the world are struggling to fill vacant roles, it could help with recruitment, too.
“The talent of the future wants a sustainable story, and they want to work with sustainable brands,” Fyfe said. “It’s also the right thing to do for the planet.”