PERTH: David Jones has signed a new 20-year lease agreement which will see an expansion of its Karrinyup Shopping Centre store.
David Jones hopes that the development will improve its competitive position in relation to Myer, which is also in the regional shopping centre.
The company reported that the department store is currently underperforming in the centre due to restricted floor space which limits its brand offering.
David Jones will develop its existing 9500 square metre store in the Karrinyup centre by 50 per cent to a 14,000 square metre store.
David Jones sees the expansion as an opportunity to capitalise on the wealth of the northern Perth region, which has an average household income of $83,989 per annum. This is comparable with Chadstone and Southland in Victoria, two of the company's best performing suburban stores.
Perth is perceived as a growing region in the department store type merchandise market, with growth estimated at 5.6 per cent per annum in future years.
David Jones chief executive officer said Northern Perth has been targeted as an area of significant growth potential for David Jones. He reported that the company had also locked in a proposed new store in Whitford and an option for a new store at the proposed Westfield Innaloo redevelopment.
The store is expected to be completed by the September 17, 2013.