David Jones feels chill
THE sales slump has worsened at beleaguered department chain David Jones, with the company’s South African owners confirming a 2.1 per cent drop in total sales over the past four-and-a-half months.
Parent company Woolworths Holdings told the Johannesburg Stock Exchange yesterday that David Jones’ comparable store sales were down 0.7 per cent in the 20 weeks since July 1.
A 68 per cent increase in online sales to November 17 stemmed the bleed somewhat, and now comprise 10.4 per cent of the store’s total sales — up from 8 per cent at its fullyear earnings result in August.
The upmarket retailer blamed the ongoing decline partially on disruption from the refurbishment of its Elizabeth St store in Sydney, which is due for completion in March.
Woolworths’ trading update for David Jones comes after competitor Myer posted a better-than-expected full-year profit in September, even though sales at its rival are also falling.
David Jones is among many stores suffering amid a broader retail decline in Australia.
In August, economic headwinds were blamed for a $437.4 million writedown in the value of the store, meaning the chain is worth less than half the $2.2 billion Woolworths purchased it for in 2014.
Woolworths said its Country Road Group sales were also down 4.7 per cent for the period, with the parent attributing the decline on the clothing brand no longer being stocked at rival Australian department store Myer.
Country Road’s comparable sales growth of 0.7 per cent for the period includes online sales, which grew by 7.7 per cent, and represent 19.5 per cent of total brand sales.