Myer and DJ's declare all out war
Australian department store giants Myer and David Jones have earmarked Melbourne as the next battlefield in their longstanding retail stoush.
Only six months after Myer announced a $250 million state-of-the-art refurbishment of its iconic Bourke Street store, David Jones last week unveiled its own $85 million Melbourne growth strategy.
Commencing in May 2008 and expected for completion in December 2009, the plan would see the redevelopment of David Jones' two flagship sites in the city's central business district - a move it hopes will tap into an additional $300 million is sales over time.
In announcing the ambitious redevelopment, which will deliver 30 per cent more selling space for key categories and an increased number of Australian and international brands, David Jones chief executive Marc McInnes said sales in the market had already grown by 60 per cent over the 1995 - 2007 period.
McInnes said that by 2010, David Jones would once again be the pre-eminent department store in Melbourne, after allowing Myer to overtake its lead position in 20th century. "We don't intend to allow them to do that in this century."
But Myer has hit back at the company's multi-million dollar proposition, arguing its own redevelopment would not only rival David Jones but compete alongside the best department stores in the world.
"We currently have a team of several management [representatives] travelling in the USA, UK and Italy to look at the best stores in the world and to replicate some of that here in Melbourne," a company spokesperson said. "This will ensure we really are the premier department store in Australia."
The spokesperson said once construction winded down in time for the 2009 Christmas trading period - the same period David Jones' development is expected for completion - a glass domed cultural centre would tower over the site and feature fine dining, fashion parades and other "major cultural events".
"We have also made clear our intention to retain all the heritage elements of our Bourke Street building such as the iconic Mural Hall and of course, our much loved Myer windows."
Australian Retail Services consultant Roger Sayers said Melbourne, the country's leading fashion capital, had reawakened rivalry between the department stores and similar announcements should be expected within coming months.
"[David Jones] will also be looking to make further inroads within suburban Australia such as Doncaster Shopping Town, where Myer has previously been dominant. This is why their Capital City Flagship stores must be constantly updated and not become tired and dated."
Sayers said David Jones would continue to focus on the middle to upper end market with exclusive labels such as Ginger & Smart, Kirrily Johnston and Collette Dinnigan as well as high-quality house brands.
"With the major developments previously announced by Myer for its Melbourne city store, it is essential that David Jones does not lose its image and momentum within the market."
By Assia Benmedjdoub