David Jones Sales Fall, But Online Soars 46.8%
David Jones is going through tough times for in-store sales, but modern times have proven that online retail is growing stronger than ever. Woolworths Group has shared its annual 2019 report, with David Jones sales slipping over the Christmas period.
The report found that its full-year sales declined by 0.8 percent with comparable-store sales 0.1 percent lower. However, despite these drop in in-store sales, there has been a rapid increase in online sales.
“The market remains highly promotionally driven as retailers fight for share of wallet,” the report found. “Additionally, online sales are growing rapidly, leading to a decline in shopping centre footfall.”
Online sales in David Jones now account for 7.7 percent of total sales, having grown by 46.8 percent from the prior year. “We will continue to develop a future-fit digital capability with ongoing enhancements and supply chain improvements to drive online sales contribution to over 10 percent by 2020,” the report explained.
“The growth in online sales has led to the development of a detailed store network strategy to right-size our physical space. We envisage store portfolio rationalisation of up to 20 percent by 2026 as we focus on optimising our store footprint and reducing related costs.”
David Jones is planning to close a store as a result of the slow-moving sales. “Not just in Australia, but worldwide, the department store industry is under pressure,” the reports read. “The growth in online sales has led to the development of a detailed store network strategy to right-size our physical space. We envisage store portfolio rationalisation of up to 20 percent by 2026 as we focus on optimising our store footprint and reducing related costs.”
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About the Author: Power Retail
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