Country Road hits full throttle
Following hard upon revelations of a similar deal with rival department store Myer, the DJs deal would bring the total number of department store concessions to more than 70, confirmed Country Road CEO Ian Moir.
"The arrangement [with the department stores] involves retail outlets which allow us to buy the stock, supply the staff and completely own and manage the businesses."
Moir said the presence of the brand in both David Jones and Myer represented "no conflict whatsoever."
Country Road exited a wholesaling arrangement with David Jones three years ago but had kept the lines of communication open since then with a view to reviving the relationship in a different guise.
"I'd always made it clear that we would only ever go back to David Jones on a concession basis," he said, adding the company had spent the past four years "sorting out" its business in preparation for a move to a retail-only model.
"We've greatly improved the fashionability of the brand. We have maintained quality, reduced prices, implemented wide-ranging supply chain improvements and increased our speed to market."
As a result, the past two years had seen a 70 per cent increase in unit sales, pointing to a business that was ripe for expansion.
The new David Jones and Myer outlets - to open from early 2007 - would require 400 store staff, Moir confirmed.
"It's going to be a challenge to recruit and train that many staff between now and then. We'll be looking for suitable candidates everywhere."
A three-year plan would involve further aggressive expansion marking a significant change in the fortunes of the Country Road brand, believed by many to have lost direction in recent years.
"It's been a difficult period but a period of real transformation. We've been guided by a very clear vision from our principle shareholders, who have always taken a long term view and supported us all the way," Moir said.