David Jones has unveiled a six-floor reimagination of its Bourke Street, Melbourne flagship as part of an overall plan to revamp its Australian footprint.
The newly refreshed department store in Melbourne has added a new luxury sunglasses destination, offering premium brands including Gucci, Chloe, Balenciaga, Saint Laurent, New Bottega and Chanel.
Its reveal marks the completion of this stage in Bourke Street’s transformation.
The first two phases introduced the luxury womenswear and accessories floor, and the consolidation of the menswear department with two new floors and premium service offerings, including new personal styling suites and made-to-measure services.
Speaking with Ragtrader, David Jones CEO Scott Fyfe said the entire transformation began in early 2020.
“When the rest of the world was shutting down, we were looking forward,” he said. “And we were really focused on bringing a new experience for our customers in the CBD of Melbourne.
“We're thrilled about the latest stage that we're opening in the store."
The Melbourne flagship transformation is only the beginning, Fyfe confirmed.
“We've got a few more in the pipeline with partners, landlords,” he revealed. “So we've got two or three more in flight just now, and we look forward to replicating what we've done in Melbourne in many more of our stores.”
The $50 million investment is expected to tap into the Melbourne store’s nine million customers that visit it each year.
According to Fyfe, the reveal of the new Bourke Street department store is also a win for fellow retailers.
“Since first opening, the Bourke Street store has played a pioneering role at the forefront of Melbourne retail,” Fyfe said. “The reimagination of our flagship store will help reinvigorate Melbourne CBD following the challenges for retail brought about by COVID-19 lockdowns.”
Lord Mayor Sally Capp echoed Fyfe’s sentiments on CBD foot traffic, saying this redevelopment will attract more shoppers to the city.
“[This] will have immense flow-on effects for other traders,” she said. “We know that people visiting the CBD are seeking unique experiences and this reimagining of David Jones’ flagship store is a one-of-a-kind retail offering that will draw people from Melbourne, Victoria and beyond.”
The refurbishment comes as David Jones announced a reduction in floor space across its Australia/New Zealand store portfolio in its annual report earlier this year.
This includes the approved downsizing and redevelopment of its flagship in Chatswood NSW, which its integrated annual report said will be jointly funded by the landloard and by David Jones "from operating and capital budgets."
Over the past year, Woolworths Holdings Limited downsized David Jones’ footprint by a further 2.6%, accruing a total reduction of 9.5% from the 2019 base. This is in a bid to reduce occupancy costs.
In both Australia and New Zealand, David Jones has 430 000 m2 trading space across 44 store locations.
According to Fyfe, his team will look into “many things” as it navigates floor space reduction.
“We'd look at, you know, the criteria that we assess those by, and we've made sure it's the right thing for our customers and our staff,” he said.
“That's something we're really focused on. It's something that we will keep you abreast of as we change the landscape of retailing in Australia and New Zealand, post the pandemic.”