David Jones to Phase Out AV, Appliance Business Expanded
Leading department store David Jones, has decided not to sell audio visual products, instead the company is set to expand their appliance business.
ChannelNews has been told that a decision was recently taken to the board relating to the sale of AV technology in particular TVs and sound gear but it was rejected.
It was only recently that David Jones extradited itself from a relationship with the failed Dick Smith group which went into liquidation with debts of over $400 million.
According to sources the group is set to utilise the space formerly allocated to AV and consumer electronic products to new fashion labels and accessories.
Woolworths’ most recent results, for the year to June 26, 2016, showed David Jones sales rose 8.4 per cent in Australian dollar terms, and same-store sales grew 7 per cent.
Currently David Jones is undertaking a move of their head office from Sydney to Melbourne.
New research shows that department store sales grew 7.8 per cent in June, well above the 12-month average of 3.8 per cent,” Deutsche Bank said.
David Jones’ arch-rival Myer, by contrast, last reported total sales for the three quarters to April 23 were up 1.9 per cent to $2.47 billion with a rise of 3.3 per cent in same-store sales.
The move by David Jones to drop AV and consumer electronics will be a major blow to several distributors who supplied sound gear as well as to TV manufacturers.
Last night David Jones confirmed they have sold their menswear store in Sydney for $360 million the move will see apartments built on top of a revamped retail centre.
The store has been sold to the Scentre group for $360 million.
Scentre Group,are the owner of the Westfield Sydney mall and the Melbourne-based super fund Cbus were the buyers. Scentre will redevelop the retail floors to adjoin its mall, while Cbus will develop the air rights into apartments.
Scentre’s chief executive Peter Allen said the group’s share of the purchase price is $182.5 million with Cbus Property paying the balance of $177.5 million.