DJ's expansion banks on fashion

David Jones' FY09 to FY12 strategic plan has revealed an ambitious store expansion and refurbishment scheme underpinning its 'home of brands' positioning.

Unveiled earlier this month, the strategy revealed the department store would open between four and eight high value new stores within major metropolitan centres over the next four years.

These would be in locations with high value demographics, large catchments, attractive growth prospects and low department store penetration.

The new stores would bring the total number of outlets in the company’s portfolio to around 44 - an increase of 18 to 30 per cent over four years - and would help expand David Jones’ brand profile in high income demographic regions.
David Jones CEO Mark McInnes said the timing of the new store roll-out coincided with a property sector trend towards the development and expansion of high value centres.

"Our new store opening strategy is able to capitalise on this trend by securing a presence in high-value shopping centres with large catchments and a strong demographic profile where we are not currently represented and which offer strong growth opportunities."

Locations for new store expansion included Doncaster (Vic, Eastern Melbourne) to open in 1H09; Claremont (WA, Perth) to open in FY11 (replacement of an existing store); three further high value stores in final lease negotiations (two scheduled to open in FY11 and a third in FY12); and up to five additional high-value new stores currently in active negotiation (two scheduled to open in FY11 and three in FY12).

David Jones also planned to refurbish 11 to 14 high-value existing stores over the next four-year period McInnes said.
Fashion continued to play a key role in the retailer's branded strategy, with Australian and international labels including Easton Pearson, Tommy Hilfiger, Lacoste and Polo Jeans playing a key role in establishing David Jones as a contemporary branded department store.

Around 50 per cent of sales in core apparel and accessories categories were generated from its "department store exclusive brands," McInnes said.

David Jones had also added a new, younger customer segment to its traditional customer base through the introduction of brands such as Sass & Bide, FCUK, Witchery, Armani Jeans and Industrie.

Since FY03 this new customer segment had generated a 60 per cent per annum growth in sales revenue and currently represented over nine per cent of the company’s total sales.

By: Belinda Smart