Department store David Jones has posted a 10 per cent slump in sales for the three months ending June, citing tough trading conditions and increased household saving levels.
The slump in like-for-like sales was backed with a 10.3 per cent slump in total sales on a calendar adjusted basis. Without calendar adjustment, total sales were down almost 16 per cent.
David Jones chief executive Paul Zahra said the slump was similar across all states, demographics and categories of goods but that home entertainment and electrical were particularly hard hit due to weak demand and price deflation.
"We believe that given current trading conditions and the fact that household saving levels are higher than during the GFC it is important to invest in our business with initiatives that will entice consumers to shop with us."
Last month, the department store announced 60 new additions to its brand portfolio including Lanvin, Dries Van Noten, Hugo Boss Women, Hackett London, Victoria Beckham and Gucci, as well as a rebrand of its tagline and marketing campaign.
"We are progressing well with our new Point of Sale System. We are currently tendering for a new IT solution to support our multi-channel strategy and to upgrade and improve our online offering," Zahra said.
David Jones has reaffirmed its guidance for an 0.5 to 2 per cent fall for the financial year, despite the latest sales slump.