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David Jones to axe stores

Published: (Updated: ) in Australian News by .

The struggle for Aussie retailers is growing tougher and now even department store giant David Jones is feeling the heat.

The struggle for Aussie retailers is growing tougher and now even department store giant David Jones is feeling the heat.

The company has announced plans to axe its smaller stores and focus on big city locations in a bid to stay afloat.

For almost two centuries, David Jones has worn the department store crown. It was the place to go, for all your high-end shopping needs. But DJ's as we know it is all about to change.

"Anything that is unprofitable for them that's where they are going to look at either reducing their floor space or removing the store altogether," Australian Retailers Association Russell Zimmerman told 9News.

Figures show operating profits for David Jones fell 57 per cent to just $20 million dollars late last year. It's hoped the axing of several store locations will help claw the money back, along with a shift towards quality over quantity.

"Fewer stores, more online, more boutique. More top end, but really lovely merchandise. So yes, it will just be a different David Jones," NextGen Group's Neil Rechlin told 9News.

David Jones won't specify exactly how many stores will shut up shop but says overall floor space will be axed by 20 per cent in the next five years.

Experts are forecasting there could be as little as 12 stores left Australia wide.

"Change is inevitable we need to embrace that change and enjoy the David Jones of the future," Mr Rechlin said.

David Jones isn't the only major retailer feeling the heat, long-time rival Myer recently axed its third Sydney store in less than five weeks. It was the end of an era for Myer Hornsby after four decades.

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Harris Scarf is also among those suffering – falling into receivership last December as the shift to online shopping continues to rise.

Source: 9News https://www.9news.com.au/national/david-jones-iconic-retailer-to-axe-australian-stores-in-bid-to-stay-afloat/58985627-5c13-49b6-81ed-22c76010ea84

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