NATIONAL: David Jones is expecting to generate an additional $60 million per annum with the opening of a new store on Queensland's Sunshine Coast.
The site is expected to attract $50-$60 million in revenue per year over time and perform within the top half of the company's store portfolio.
The 14, 000 square metre site will be the first store opened since the department store announced its four year strategic plan in March. Under the plan, David Jones will aim to open four to eight new stores in "high value" locations which boast strong demography, large catchment, attractive growth prospects and low department store penetration.
The stores will also be required to deliver at least $40 million in sales and at least $5 million per annum in store contribution by their second year in operation.
David Jones CEO Mark McInnes said the management team had spent months assessing a number of potential sites for a new store and had settled on Sunshine Plaza.
"We have for some time recognised that Queensland (in particular the Sunshine Coast) is a market which represents enormous growth potential for our company and in which department stores are under-represented."
The Sunshine Plaza site is targeted to open by 2012 as part of a proposed redevelopment of the shopping complex.