DJs sales hit low point

David Jones has posted a slide in sales in its first trading update for the financial year as the retail malaise bites the nation’s oldest department store.

DAVID Jones has posted a slide in sales in its first trading update for the financial year as the retail malaise bites the nation’s oldest department store.

Sales dropped 5.3 per cent for the 20 weeks ending November 12, compared with the same period a year ago.

Like-for-like sales, which strip out the impact of stores opening and closing, fell 5.2 per cent, its South African owner Woolworths Holdings reported yesterday.

“Sales growth was impacted, but gross margin was protected, by the pull-forward of the end-of-season winter sale into late June and a reduction in promotional activity throughout the period,” Woolworths said in statement.

“Disruption caused by the refurbishments of the Bondi Junction Food Hall and the Elizabeth Street store (in central Sydney), as well as from the implementation of the new inventory management system also impacted trade.”

The sales slowdown adds to the 0.7 per cent slump in likefor-like sales David Jones suffered last financial year – the first drop since Woolworths bought it for $2.3 billion in 2014.

Sister business Country Road Group fared better, with sales rising 8.3 per cent while like-for-like sales slipped 0.4 per cent.