David Jones is marking one full year of its revamped loyalty program, reporting more than 650,000 new sign-ups over the last 12 months, coming amid recent media scrutiny around the department store's supplier relationships.
In a new release, David Jones reported that its loyalty program – David Jones Rewards – has grown by 650,000 new members, and is now believed to be above 4 million altogether. At its official relaunch in September last year, the business reported it had 3.6 million members.
The department store also reported that its app has surpassed one million downloads, and has awarded more than 6,000 Reward Points every minute to all its members across Australia.
The program now accounts for 61 per cent of all its sales, with members spending 40 per cent more than non-members.
Ahead of its relaunch last year, the department store inked a deal with Qantas, bridging loyalty between the two. David Jones added that Qantas Points earners spend approximately 30 per cent more than standard David Jones Points earners, while customers have redeemed millions of Qantas Points in-store and online across premium fashion, luxury accessories, designer homewares and gifting.
The news comes as various media reports indicate supplier challenges at the national retailer. The Australian recently reported that some of David Jones concession store suppliers are believed to be withholding stock until they are paid up front.
The Australian Financial Review also recently reported that some of the world’s biggest high-end brands – including Christian Dior, Gucci and Chanel – are pulling out key categories at the retailer.
In that report two weeks ago, the AFR noted that LVMH-owned Dior stopped selling shoes and handbags in David Jones about a month ago, while Gucci has also exited.
Chanel also reportedly stopped stocking its shoes, but still offers cosmetics and fragrance.
In that same story, David Jones chief executive Erica Berchtold said the department store’s relationship with luxury brands was changing.
“Rather than locking in confirmed footprints of these brands for long periods of time, we’ll do pop-ups, we’ll do trunk shows, and we’ve got some other exciting things to fill in those spaces,” she told the AFR.
“I have a clear view of where I want to take David Jones that I have shared with the landlords.”
Berchtold took over the CEO role in June following the exit of Scott Fyfe. She is the first female to take the top job at David Jones in its 188-year history.
Meanwhile, another story from The Australian is reporting that shopping centres are keeping David Jones under watch.
David Jones declined to comment further when contacted by Ragtrader.
Regarding the loyalty program wins, David Jones will launch its inaugural Members Week from October 5 to 11 to mark the milestone. This will include exclusive offers, bonus points opportunities, member-only experiences and enhanced rewards. This includes 30 per cent off selected full-priced spring fashion, shoes and accessories, 20 per cent off select full-priced beauty, 15 per cent off full-priced appliances and 20 per cent off the David Jones Christmas Shop.
The business will also offer 55 per cent off beds from Sealy Posturepedic.
Customers who have linked their David Jones Rewards and Qantas Frequent Flyer accounts and selected Qantas Points as their preferred reward option will also receive Double Qantas Points on eligible purchases throughout the week.
David Jones chief marketing officer James Holloman said the first year of David Jones Rewards had exceeded expectations.
“In just 12 months, David Jones Rewards has become a key part of how our customers engage with David Jones,” Holloman said. “More than 650,000 new members have joined the program, and over one million customers have downloaded the David Jones app, reflecting the strong response to a loyalty experience that makes shopping with David Jones more rewarding.
“David Jones Rewards is about giving our members access to personalised offers, exclusive experiences and early access opportunities, as well as the ability to earn either David Jones Rewards Points or Qantas Points every time they shop.”