Harvey Norman Throw “Wobbly” Over New Smeg Range At DJ’s + Myer
Recently Smeg was set to launch their new small appliance range exclusively via David Jones and Myer but according to insiders Harvey Norman “Threw a wobbly” demanding that they also get the new toaster and mixer range as well as the two big department stores.
David Jones chief executive Iain Nairn said that David Jones that is now South African owned seeking to ramp-up the department store’s dominance and exclusivity at the luxury end of the market with the Company looking to expand both premium and house brands.
In twin presentations to analysts this month, featuring a discussion, strategy review and update on David Jones and the Country Road Group, Woolworths outlined its next challenges in the intensely competitive retail sector.
“We are performing well against the department store sector and now shift our focus to specialty,” analysts were told.
Woolworth values Australia’s specialty store sales at $44bn and takes in department stores, discount department stores, international stores and online variety stores.
The Company is also looking to expand their house brand appliances range in coming months.
David Jones is estimated to have about 5 per cent of that market, which offers huge growth potential executives claim.
“Specialty dominates our relevant market. Our share is increasing. The opportunity for growth is stealing from specialty,” investors were told.
Analysts claim that David Jones has 1.3 million shoppers dubbed “dormant customers” who if motivated to spend at David Jones could generate $3.6bn in spending.
David Jones believes its customers prefer “better, bridge and luxury brands”, with the “better” and “bridge” segments making up 70 per cent of its business according to the Australian newspaper.
The department store will use insights gained from data analytics specialists Quantium to better understand the market, growth and share, which will then form the basis of a revived brand range.
Combined private label sales in David Jones are tipped to grow from 3.5 per cent to 20 per cent over the next five years.
David Jones will also implement new initiatives to transform its customer service and customer experience, introducing a new staffing structure with a redesigned sales manager role.
David Jones will also go after Asian customers.
In February Mr Nairn, the former boss of Country Road, said he was shocked at the archaic systems David Jones had in place when he and his Woolworths team were handed the keys to the business.
He claimed the retailer was “behind the eight ball” but with that its new owners were determined to put it back in its rightful position among the world’s best department stores, pushing through a complete transformation that would touch all parts of the retailer.