l walk away from the $4 a share offer if it isn’t able to acquire 100 per cent of the issued shares. Moir was emphatic that the David Jones acquisition will be 100 per cent or nothing, so there will be no more minority shareholders carping at the business strategies and performance of a department store keen to develop a business model that can compete with online retailers and global retailers. Moir joined Country Road in 1998 from the Woolmark Company where he worked for 10 years. After two years as COO he was appointed CEO of Country Road, which was then struggling for profitability and credibility with consumers and trying to cope with substantial losses from an unsuccessful foray into the US. The Scottish-born Moir, who is an Australian citizen, claims Country Road was on the verge of liquidation when he joined the retailer after Woolworths acquired an 87.9 per cent stake in the company. He cut costs, closed the US stores, streamlined supply chain and wholesaling operations, and invested in a new design team to reconnect the brand with consumers. When he became Woolworths CEO two years ago, he made big promises, and has delivered on them – investors who backed him got a 330 per cent total return under his watch. Moir was selected as CEO for Country Road’s parent company, Woolworths, in 2010 and has polished his Australian credentials with an impressive improvement in the fortunes of the listed South African retailer in the past two years. As part of his role at Woolworths, Moir was mulling over possible acquisitions, and David Jones was on the radar because it was underperforming and beset by controversy and apparent conflict between its board and CEO, Paul Zahra. A Myer/David Jones merger proposal and a revamp of the David Jones’ board cleared the way for Moir to take a serious look at acquiring the department store group. Moir’s success at Country Road and Woolworths in the past two years has given him the gravitas to win the backing of the Woolworths board of directors in Cape Town and funding for the bid from Standard Bank, Citigroup, and JP Morgan. Backing for the takeover recognises Moir’s experience and understanding of the Australian market and his knowledge of both David Jones and Myer. He knows the value of the David Jones brand and is keen to develop more opportunities, including leveraging scale from same season retailing in Australia and South Africa, carving out a different set of synergy benefits to those proposed by Myer in its merger plan. Moir plans to focus on costs, but is also focused on growth and new opportunities, pointing out that Woolworths private label ranges could offer David Jones a quality, value-priced offer to compete with other retailers, including Myer and new global entrants such as H&M. David Jones private label ranges could account for around 30 per cent of total sales under Moir’s plans, as well as a stronger representation of Country Road brands and new South African brands. Moir says the acquisition will be a win-win proposition, creating the second largest department store retailer in the southern hemisphere with sales of around $5.7 billion from from 1151 stores across 16 countries. Around 43 per cent of the sales would be generated in Australia and New Zealand. “The combination of Woolworths and David Jones provides significant advantages that will benefit both companies and their customers,” he said. “The group will have increased scale that will drive significant efficiencies and economies through enhanced global sourcing and the ability to leverage shared seasonality and trends, improving value for the customer and overall profitability. “Each business will be well equipped to compete with global retailers in their respective markets. “Working together with David Jones’ highly capable management team, Woolworths plans to accelerate David Jones’ strategic initiatives to consolidate and grow its competitive position and performance with synergies of least $130 million per annum in pretax earnings within five years.” Initiatives include profitable expansion of the David Jones private label product offering, the introduction of an improved loyalty program based on existing Woolworths knowledge and expertise, and significantly increasing omni-channel initiatives and presence. He said the takeover would lead to overall group profitability improvement and better product pricing through increased volumes and group-wide lower cost sourcing, expanding private label brands while continuing to provide a strong platform for independent brands. Moir has also backed the rollout of village format stores and improving existing store productivity. Solomon Lew has been mooted as a potential buyer of either David Jones or Myer for the past two years after assembling a management team drawn from the upper levels of both department store groups and led by former David Jones CEO, Mark McInnes. Lew was critical of Country Road’s acquisition of Witchery, the fashion chain he once owned, and Mimco from private equity owners. He may well now be miffed that Woolworths has all but sewn up a deal to acquire David Jones as well, but while Lew and Myer have been intent on shopping for a bargain, Moir has delivered a knockout bid and a commitment to back Zahra’s business strategy.