Cost cutting gives a boost to David Jones
UPMARKET department store David Jones has posted an almost fourfold increase in its profitability through 2021 despite the shockwaves running through its retail stores due to Covid-19.
South African owner Woolworths Holdings has ripped tens of millions of dollars of costs out of the business, shut down most of its loss-making food halls venture and cut floor space by as much as 7 per cent as it aims to reduce store space by 20 per cent in the next few years.
David Jones’ adjusted earnings hit $84m for fiscal 2021, up from an adjusted $22m in 2020.
David Jones turnover and concession sales over the period increased by 2.3 and were up by 0.9 per cent in comparable stores,
Online sales increased by 24.4 per cent and contributed 17.3 per cent to total sales.
“In Australia, stronger economic fundamentals, improved consumer confidence and restrictions on international travel supported inwardfocused consumption and buoyed retail spend,” Woolworths Holdings said.