David Jones has announced the closure of another physical store with the retailer optimising its network to ensure omnichannel efficiency.
David Jones has announced the closure of its Eastland store in Ringwood in Melbourne (not pictured above). The store will close in mid January 2024 after it recorded a 38 percent slump in June.
David Jones has said it is focusing on its flagship stores and optimising its omnichannel experience.
“David Jones is focused on delivering world class products and experiences for our customers both online and in-store as Australia’s leading omnichannel retailer,” a spokesperson said.
“Key to delivering this experience is our ongoing program of retail network optimisation, which includes refurbishing our stores, right-sizing and where necessary, consolidation of our footprint.”
While David Jones hasn’t disclosed how many staff will be impacted, a spokesperson said “we are going through a consultative process and 97 per cent of our team members have redeployment opportunities.”
This recent closure brings David Jones’ footprint down to 42 stores across Australia. Last year, the company’s attempt at international expansion was haltered by the closure of its Wellington store in Aotearoa New Zealand after just over six years in the capital. It currently still operates one store across the Tasman in Auckland.
David Jones chief executive Scott Fyfe told the AFR in August that trading at the upmarket department store has remained in positive territory both in store and online, with shoppers are still investing in luxury brands despite some cost of living pressures. He said that the company was pleased with its FY22 numbers and they have ‘set some really good momentum into 2024 and 2025.’
In August, reports also revealed the company was planning to cut up to 100 roles as part of an extensive review of retail and department store operations under its new private equity owner, Anchorage Capital who bought the company in March for over $100m. As part of a broad review of operational efficiency, David Jones said it plans to implement process improvements and technologies with a view of “streamlining processes and eliminating tasks that are not focused on people or service” with this store closure potentially signalling the first of more changes to come.