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Evolution of the Department Store

  • August 17, 2017

Evolution of the Department Store

The Property Council’s ‘Evolution of the Department Store’ Retail Breakfast on 10 August, saw an in-depth analysis of how Australia’s traditional retail cornerstones are responding to new challenges.

Cristie Gordon, David Jones’ General Manager – Real Estate, provided a compelling overview of the strategy being implemented by David Jones to respond to changing market realities. Central to the strategy is making better use of floor space, without compromising the luxurious feel of a David Jones store.

The new boutique store at James Street represents the new wave of smaller-scale or stand-alone stores which densify the ‘sell space’ and provide an ‘edited offer.’ David Jones is well advanced in its use of big data analytics to target its offer to the local market and has undergone a considerable restructure of its back-of-house and logistical operations to also reduce their floorspace footprint.

Food is central to the David Jones growth strategy. New food hall experiences in CBD flagship stores, and smaller food markets in suburban stores, will be rolled out over the short to medium term as part of a $100 million upgrade of its food business. The new food offer is intended to have a “halo effect” which will support the broader retail offer.

Following the presentation, Vicinity’s Regional General Manager – Shopping Centre Qld, and Chair of the Property Council’s Queensland Retail Committee, Daniel Sutton, moderated a panel discussion with Mark Bassett, Fund Manager – ISPT Core Fund, and Kym Thrift, Leasing Executive at Indooroopilly Shopping Centre.

Kym and Mark analysed the emergence of the mini-majors and internationals on the Australian retail landscape and what Australian retailers can learn from international experiences. Cristie outlined David Jones’s view that mini majors and internationals are complementary assets which are relieving the pressure on department stores to act as primary attractors. 

The Property Council thanks Cristie, Mark and Kym, for sharing their insights and Joint Sponsors Urbis and Yardi for their ongoing sponsorship of the retail breakfast series.

Photos from the breakfast can be found here.

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