MELBOURNE: David Jones' reopening of its flagship Bourke Street Mall stores will mark a historical shake up in competitor dynamics, the retailer said today.
The national department store confirmed the $250 million redevelopment of its two Melbourne central CBD stores is complete. The stores will open to the public tomorrow (August 13), representing the completion of three years of renovations.
David Jones CEO Paul Zahra said the new design of the two Melbourne CBD sites was inspired by international department stores and the latest trends in global retailing.
“For the first time in history the David Jones Melbourne CBD stores will be on par in size with our competitor,” Zahra said.
“We have been able to deliver a 30 per cent increase in selling space from our redeveloped flagship Bourke Street stores by capturing previously unused space through a substantial rebuild of our Women's store.”
Women's footwear will enjoy the largest increase in space, jumping 165 per cent in size. Menswear will have 84 per cent more space, womenswear 40 per cent more, and intimate apparel and sleepwear will increase in size by 24 per cent.
The new stores will carry more than 2500 brands, 150 of which are new to the Australian market. New brands David Jones has added to its portfolio include international labels Celine, CK Swimwear and Thomas Pink as well as local labels Jac+Jack, Dion Lee and Josh Goot.
David Jones said the additional 30 per cent in selling space is expected to generate a similar increase in sales, while gross profit margins are expected to improve based on the allocation of more space to high margin categories.
“Our $250 million plus investment in the redevelopment of our two flagship Bourke Street stores has not only redefined department store retailing in the Melbourne market but has also provided our business with a solid platform to capitalise on the enormous growth opportunities that exist in the broader Melbourne market,” Zahra said.
“Our two redeveloped Bourke Street Mall stores are expected to deliver a substantial increase in sales and store contribution and a strong return on investment.”