David Jones enters administration as department stores struggle

Summarised from 2 outlets · Updated 5 Nov, 17:11 · Archive

Australian department store David Jones has entered voluntary administration, unable to pay rent to landlord Scentre Group.

David Jones, the 188-year-old Australian department store, entered voluntary administration on Thursday, unable to pay rent on many of its stores to Scentre Group, which owns Westfield. McGrathNicol administrators are attempting to either recapitalise the business or find a buyer to prevent its collapse entirely.

The failure is viewed as a signal that department stores must adapt to suit modern consumers or become irrelevant. RMIT University retail expert Carol Tan said department stores have failed to offer the exciting, pampering and useful experience for which they were once known. 'If you walk into David Jones, it's literally a space with different brands, and you cannot get service,' she said.

Much of the problem stems from the stores' structure. Many staff within David Jones are employed by individual brands who pay concession fees to rent floor space, fragmenting the customer experience. Tan noted that department stores could have an advantage because customers often do not arrive with a particular brand in mind, seeking instead advice on what to wear or which kitchenware to buy—services that require attentive, knowledgeable staff.

How it is being reported

• Department stores must improve 'experience' to surviveDepartment stores like David Jones should prioritise customer in-store experience if they are to survive and compete with online retailers, an expert says.The West Australian · 5 Nov, 16:33
• Department stores must improve 'experience' to surviveDepartment stores like David Jones should prioritise customer in-store experience if they are to survive and compete with online retailers, an expert says.Perth Now · 5 Nov, 16:33

In this story: David Jones · Scentre Group · Westfield · McGrathNicol · Carol Tan · RMIT University · Australia

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