David Jones doesn’t need more stores. It needs a reason to exist.
There is something deeply sad about the prospect of David Jones disappearing from the Australian retail landscape.
For generations, David Jones represented aspiration. It was where Australians went to buy something special, discover an international designer or treat themselves to a little luxury.
But somewhere along the way, David Jones forgot what made it special. It became beige. Both in store design and products inventory.
The solution isn’t another restructuring that kicks the can down the road, or another suburban store refurbishment or another round of redundancies.
David Jones needs to become more exclusive and infinitely more interesting.
My vision is simple. Keep two magnificent flagship department stores, one in Melbourne CBD and one in Sydney CBD. Close the suburban locations and transform the rest of the business into a world-class online retailer. A retailer that ships to the world.
Those two stores should become destinations in their own right. Beautiful, exciting spaces that showcase the very best of what David Jones offers. Friendly customer service, using AI to really know the customers.
If I receive one more weekend email from them offering me 30% off bras, as a loyal customer I may have to buy one just to burn it.
The physical stores must become the heart of the brand, while the online business serves the entire country. DJs sells nothing right now that I can’t get elsewhere.
The idea was always that retailers spread their overheads across dozens of stores. But that model no longer works when customers increasingly shop online and expensive retail space becomes a financial burden.
The future is about having a physical presence that builds trust, creates excitement and gives customers a reason to engage. Something to travel for.
Apple has done it perfectly. Their stories are destinations. Their service is fantastic. No one ever struggles to find an Apple staff member. Usually about three find me before I’ve even looked at a product.
David Jones has a product problem.
Walk into its perfume department and you’ll find much the same offering as Myer, laid out exactly the same way.
Visit the men’s department in a suburban mall and you’ll discover brands operating concessions inside David Jones that already have their own standalone stores elsewhere in the shopping centre. Those stores have my email address and customer profile and change rooms right next to the product.
So what’s the point of a department store?
Become a tech company
DJs should become a tech company as soon as possible With automated buying focused on emerging trends using AI. Robotic purchasing and super-fast delivery. The two stores should be global flagships.
David Jones should be Australia’s answer to Mr Porter. A combination of Harrods in real life with the online shopping experience of Amazon.
The last time I bought two shirts from DJs online, I waited three weeks and then received an email saying they were cancelling my order due to a malfunction. What?
The last time I visited a store, it was a Sunday, and while I tried to find my size, I could hear two employees, totally ignoring my need for help, complaining about how they should be paid (even more) to work on a Sunday. When I went to pay, the poor young guy had no idea how to work the register. We had to wait for his manager to return from break to assist. Thank heavens for those penalty rates.
DJs should also become the ultimate showcase for Australian designers, bringing local creativity to an international standard. A central place whee local designers can get their brands out to the world.
Consider Byredo, the European fragrance house that has built an extraordinary following. In Australia, Mecca has become a destination for brands like this.
Why isn’t David Jones the local home of Byredo?
How has a department store with almost two centuries of heritage allowed newer retailers to become the arbiters of taste? And to set up show right across the road.
Australia already has plenty of retailers competing on price. Chemist Warehouse, Bunnings and JB Hi-Fi have built enormous businesses serving increasingly cost-conscious consumers. Even if the yellow sticker and red texta text is the same price as anywhere else, Aussies love the feeling they’re getting something for cheap – even if they’re not. DJs should not play in that pond, because it can never compete.
Not every Australian wants the cheapest product. Sometimes spending more for something long-lasting makes use feel aspirational.
“Quality is remembered long after price is forgotten”.
We want to buy an exceptional gift. Discover a new fragrance. Find a fashion label that hasn’t already appeared in every shopping centre. Find the next big thing.
And wealthy Australians no longer need David Jones to access the world. They can board a plane to Paris, Milan or London, or order directly from international boutiques.
That’s precisely why David Jones needs to give them a reason to shop locally. Do the job for them.
Perhaps private equity will eventually make the difficult decisions that current management avoided, preserving the brand while dramatically reducing its physical footprint.
But the greatest tragedy wouldn’t simply be losing David Jones.
It would be watching Australian retail become an endless collection of discount chains, while overseas brands take over our main streets.
