Brian Walker, chief executive of The Retail Doctor Group, told SmartCompany that David Jones has lost its way and “become a reseller of brands rather than a branded house”.
“David Jones used to stand for very high service, premium brands and hard-to-find products,” he says.
“They had an evident niche in the market and they have diluted that by taking the brand downmarket, reducing customer service and the very essence of what it was to be David Jones. It has been diluted in a sea of globalisation of retail, losing their own way and online trading.”
Walker says David Jones used to have retailers in the store who ran three or four areas and were product specialists, but now a centralised cash register system means that intimate expertise has gone.
“Somewhere along the journey it has lost the feel for what it is to be a great merchant,” says Walker.
Walker says David Jones’ woes cannot be solely attributed to a tough retail environment.
“When you look at businesses like Zara and Apple that are trading through the roof, the average Apple store turns over 10 times more than the average Dick Smith store, you start to wonder about this cautious consumer environment,” he says.
“I think consumers are reallocating their spending to brands that really deliver what they perceive as value, if you look at the department store model around the world you start to wonder if they have really lost what they stand for.”
Walker says he is mystified by David Jones’ plans to sell off its flagship stores.
“I don’t understand it. To me this was always a hub and spoke model,” he says.
“Look at Myer. They recognise the significance of having strong CBD stores and they invested in this significantly. Look at the revamp of Myer’s Melbourne Bourke Street store.”
