Department store giant David Jones, a 188-year-old mainstay of Australia’s retail industry, is pushing ahead with a series of changes to ensure its financially strained business is “future-fit”.
Rebounding from a $74.4 million loss in the 2024 fiscal year, David Jones – and its private equity owner, Anchorage Capital – began a $250 million transformation strategy. This strategy, comprising store refurbishments, digital innovation, and improved profitability, has led to the closure of two stores in NSW, along with landmark investments in its flagship stores in Brisbane, Sydney, and Melbourne.
But reports of mounting pressure on the retailer have emerged, with News Corp papers claiming that the company’s average overdue payments are now more than double the industry average, at 16 days, thereby “casting doubt” over its future.
David Jones, however, told Inside Retail that its brand partner relationships “have been at the heart of our customer proposition for 188 years”.
“We deeply value these partnerships and the role they play in driving mutual growth,” a company spokesperson added. “Under our Vision 2025+ strategy, we have successfully delivered a $250 million transformation program across every part of the business on time and within budget.
“Customers are already seeing the benefits of these initiatives, which lay the foundation for long-term growth and shared success.”
One change underway at the company is the reworking of its internal operations and finances. David Jones has recently implemented a new supplier payment system, it said, and is continuing to invest in innovation in this segment.
Elsewhere, the company said it believes it is Australia’s leading premium omnichannel retailer, and wants to maintain that status.
“Our strategy is focused on being future-fit and adaptable to the ways that our customers like to shop,” David Jones added.
“Key to delivering this experience is our ongoing program of retail network optimisation, which includes refurbishing our stores, and where necessary, consolidation of our footprint [to account for the expansion in online retailing].”
At this time, Inside Retail understands that David Jones is not planning any more store closures.
