Department Stores Adjust To New Times

David Jones has highlighted the significant value of its flagship properties in Melbourne and Sydney as it contemplates downsizing its department stores. DJ’s claim they are not interested in selling their properties but they are looking at alternative uses like inviting other retailers including restaurants into their fold. DJ’s are moving to smaller “village” style stores that concentrate on fashion and beauty.

Myer is looking at smaller operations as well although concentrating on a full department store presentation. Myers, Bernie Brooks is also cutting property costs by leaning on landlords. He says rent cuts of 20% are typical.