This article is from the Australian Property Journal archive
A SIGNIFICANT fall in CBD activity throughout the COVID-19 pandemic has forced high end department store David Jones to close its iconic food hall and stores in Melbourne.
The David Jones Food Hall in Melbourne’s Bourke Street Mall will close next month, whilst its Food Stores at Capitol Grand in South Yarra, which opened in October 2019 – five months before the national COVID lockdown, Malvern Central will also close in April and May.
David Jones CEO Scott Fyfe said the decision was made following the significant impact on CBD footfall throughout the COVID-19 pandemic.
The closures follows David Jones’ decision to begin slashing its footprint across Australia. Recently it surrendered a floor within GPT’s Highpoint Shopping Centre, which will make way for discount department store Kmart.
The Melbourne CBD Food Hall closure comes a year ahead with the retailer’s exit from the building in April 2022, after it sold the store to Newmark Capital for $121 million. Although a new food offering will be introduced next year as part of the refurbishment of its Bourke Street womenswear store, including Premium Pantry, Gifting and instore food service options.
“A recent review of our food business has helped us identify a number of structural changes we need to make to ensure the ongoing success and profitability of this offering.
“Above all, we are committed to the ongoing delivery of the most iconic elements of our food offering both instore and online. We look forward to continuing to share our much-loved David Jones Food range with customers across Australia and New Zealand, and to delivering a world-class instore experience at our Elizabeth Street and Bondi Junction Food Halls,” Fyfe said.
Meanwhile in the David Jones’ iconic Food Halls at Elizabeth St in Sydney’s CBD and Bondi Junction will be elevated to provide a world-class department store offering, featuring a bespoke selection of concession partners and experiential elements.
The retailer’s pilot convenience partnership with petrol giant BP will continue across 35 locations in Victoria and New South Wales.
Fyfe said the simplified food offering would set up the business for a sustainable and successful future.
