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Thursday, 22 March 2012

David Jones Predicts 40% Profit Drop


David Jones say their profit could fall by as much as 40% as they adjust to the worst trading conditions in 20 years.
In its announcement this week DJ’s reported a 19.6% drop in first half profit. DJ's have come up with a strategy to make them a true "omni-channel retailer”, with sales from their website, mobile apps and social commerce site accounting for 10% of overall sales.
Their aim is to emulate world leading department stores like Nordstrom and John Lewis who successfully balance bricks & mortar with online retailing and feature in the top online performers generally.
DJ's strategy will include significant spending on new infrastructure to support their plans, the building of 6 new stores, and some smaller format stores.