This article is from the Australian Property Journal archive
AFTER sales crashed by almost 40% David Jones is closing its Eastland shopping centre location with some seven years remaining on the lease, as department stores continue to loosen their grip on Australian shoppers.
The department store leader will close the location in Melbourne’s eastern suburb of Ringwood, around 29km out from the CBD, on 14 January 2024.
In August, The Australian report sales at the David Jones Eastland had dropped 38.96%.
A spokesperson from the department store business said they were”focused on delivering world class products and experiences for our customers both online and in-store as Australia’s leading omnichannel retailer.”
“Key to delivering this experience is our ongoing program of optimisation of our retail network, through investment in our flagship stores, right-sizing and where necessary, consolidation of our footprint.”
“The optimisation program also involves significant investment in our rapidly growing omnichannel offering as we meet the changing needs of our customers and create seamless experiences and inspiring destinations wherever they choose to shop.”
In June, David Jones blamed the cost of living crisis for the sales slump.
The retail giant’s store at Eastland in Melbourne’s east reported a 38.96% plunge, whilst its Warringah Mall in Sydney and Highpoint in Melbourne fell 20.54% and 20.16% respectively.
While its Bourke Street Mall store in the Melbourne CBD defied the slump, with sales rose by 13.51% in June compared to last year.
David Jones, which has a 185-year history in Australia, was acquired by private equity firm Anchorage Capital for $100 million last December.
Prior to this, the South African multinational Woolworths Holdings snapped up the department store brand for just $2.1 billion in 2014.
Woolworths sold off the David Jones menswear store at 299 Bourke Street in 2020 for $121 million, amidst retail headwinds like online shopping penetration and the impact of COVID, while closing its iconic food hall and stores in Melbourne in 2021.
And continued to sell with the $510 million divestment of its Elizabeth Street store in Sydney.
David Jones entered Eastland over a decade ago to much fanfare, and opened its 11,000 sqm store in FY16, as part a major redevelopment at Eastland. It had signed a 15-year lease.
David Jones exit from Eastland leaves its rival Myer as the only department store remaining at the QIC-owned centre, along with discount department stores Big W and Kmart and 350 specialty retailers.
