David Jones Plans for Tough Conditions

Department store, David Jones, has reported a 1.3% drop in sales for the fourth quarter but say they have plans in place to make the best of the current economic climate. DJs say that weak consumer sentiment will continue to influence retailing over the next 12 months but that they have introduced a number of measures to place them in the best position to handle the mood.

DJs have reduced the depth and breadth of discounting periods whilst enhancing full margin sales particularly in categories like womenswear, beauty, and accessories. David Jones have moved away from struggling areas like DVD sales, handed over the running of its poorly performing electronics division to Dick Smiths, and re-assessed its priorities around higher margin categories.
In essence David Jones have foregone sales for higher margins (profit). As Age business columnist, Helen Knight, reported recently "CEO Paul Zahra's discourse is now all about being ready to capture profit gains when consumers open their wallets. But neither he nor his competitors know what the trigger will be."