Major brands slashing floorspace at David Jones

Major brands are pulling away from David Jones, slashing the amount of floor space they operate by over a third.

The Australian Financial Review reported that fashion labels Country Road, Witchery, and Mimco would together cut nearly 100 of 283 brand-operated concession pads across the David Jones network.

All three brands are owned by Country Road Group, which itself is part of former David Jones owner Woolworths Holdings.

“In early 2027, we intend to make some adjustments to our trading space within selected David Jones stores as we continue to invest in the locations, channels and formats that best serve our customers,” a Country Road Group spokesperson told nine.com.au

“David Jones remains a valued retail partner and Country Road Group will continue to have a presence in David Jones stores across Australia, with the mix of brands and amount of trading space varying by location.

“A number of the changes relate to locations where our brands already have a strong presence across our broader retail network.

“We will communicate directly with customers about any changes affecting their preferred brand and, in many cases, will be able to direct them to a nearby Country Road Group store within the same centre.”

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A David Jones spokesperson said the store remained committed to being Australia’s “home of fashion”, featuring local and international brands.

“David Jones is continually evolving its brand portfolio to ensure it remains relevant to its customers and supports the INSPIRE30 reset strategy,” the spokesperson said.

“As part of a review of the portfolio, trading terms and business model, we are working collaboratively with brand partners about an adjustment in their exposure across our store network.

“It is our intention that our brand partners will maintain a presence across the network with a focus on the locations with the strongest potential for growth.”

“David Jones continues to create new opportunities for our partners as well as expanding new brands and growing our exclusive and private label offer.”

Earlier this year, retail historian Dr Matthew Bailey of Macquarie University said a combination of short-term and long-term issues were placing pressure on the iconic department store chain.

Competition from online retailers, the shrinkage of department stores and the growth of shopping centres, the cost of living crisis, increasing labour costs were all limiting David Jones’ future growth.

“I think we’ll probably see fewer stores, smaller stores,” he said.

“It’s a slow decline.”

He said demographic pressures were increasing too, with younger shoppers preferring to buy online, while David Jones’ traditional customers were heading toward retirement and spending less.

David Jones closed two Sydney stores in Castle Hill and Tuggerah in January this year.