Gold Coast DJs staff to feel sting of cuts
TEN Gold Coast workers will lose their jobs as department store David Jones slashes 120 staffers nationwide as it grapples with a depressed retail sector.
The Gold Coast Bulletin understands staff at DJs’ Pacific Fair will not be impacted, but that 10 roles at its Robina Town Centre store have been axed.
The up-market retail giant confirmed it would slash 30 jobs from its Melbourne head office, and another 90 from its regional and suburban stores as it seeks to slim down amid a changing retail landscape.
No jobs have been slated for loss from the chain’s stores in the Sydney or Melbourne CBD.
A statement from David Jones said some staff would be offered redeployment and the changes would “achieve greater alignment between our team and the strategic priorities and initiatives of the business”.
“They reflect our strong focus on cost at a challenging time for retail, and will enable continued investment and innovation in-store and online as we further enhance our multi-channel customer experience,” the statement said.
“These changes have not been made lightly and affect a very small percentage of our workforce. We have prioritised redeployment options where possible and are now focused on assisting impacted team members with transitional support.
“These changes will not impact our customer experience in any way and are primarily focused on a limited number of stores, where we have plans to optimise and change our offering including through right-sizing store footprints and more focused store curation.”
The cuts follow an announcement yesterday that Woolworths would start its program of store closures in Sydney. The supermarket giant will shut about 30 underperforming Big W stores and two distribution centres in the next three years.
David Jones – which was bought by South Africa’s Woolworths Holdings in 2014 for $2.2 billion – has endured a tough few years, including a writedown of $712.5 million in 2018 due to the economic challenges facing the retail industry, and intense competition and promotions by rivals.
Former chief executive David Thomas resigned in February after just 18 months in the role, citing personal reasons.
Sales for the last full financial year fell 0.4 per cent on a comparable stores basis, but comparable sales rose 0.9 per cent in the first half of FY19.
Major competitor Myer has also been in the doldrums but reported a $38.4 million first-half profit and in March said it had reduced its debt by a third, as it works to stabilise its once-precarious financial position.