David Jones announces that it is the stores & # 39; aggressive & # 39; will close, as the profit will fall by 42%
- The CEO of David Jones has announced that & # 39; aggressive & # 39; store closures are on the way
- Department chain recorded profit loss in tens of millions for the financial year
- The company now wants to reduce floor space by a maximum of 20 percent
Large department store David Jones will shop & # 39; aggressive & # 39; will close after the profit has fallen by 42 percent.
The loss led the company owner, Woolworths Holdings, to announce that it would reduce David Jones's floor space by 2026 by 2026.
Large department store David Jones (photo) will shop & # 39; aggressive & # 39; to close after a loss of $ 27 million in the past financial year
The loss led Woolworths Holdings chief executive Ian Moir (photo) to announce that they would reduce David Jones's floor space by 2026 by 2026.
The company negotiates with landlords about their 47 Australian stores and hope to step out of existing lease contracts sooner.
& # 39; You must enter into partnerships with some landlords and adopt a more aggressive attitude with other landlords, but we are absolutely committed to reducing our space, & # 39; said CEO Ian Moir.
David Jones' gross profit margin for the 53 weeks to 30 June was 1.1 percent lower than in the previous period due to higher write-downs and an increased focus on approval.
Turnover and concession sales decreased by 0.8 percent, while the comparable store turnover was 0.1 percent lower.
Retail costs increased by 1.9 percent, but other operating costs were 6.6 percent lower due to various cost-saving initiatives.
Regional stores appear to be the first to be closed closest, as well as the ability to lower the floor space of larger stores.
& # 39; In some of those big stores we have a lot of space that we don't really need because the model has changed. So we can have a much more profitable offer at much less space, & said Mr. Moir.
Comparable sales decreased by 0.1 percent, while total sales also reached a hit of 0.8 percent or $ 2.2 billion.
While in store sales fell, online sales saw a 46.8 percent growth and now make up 7.7 percent of total sales.
& # 39; Throughout the group, we've adapted our strategies to the changing retail environment & # 39 ;, Moir said in an official statement.
& # 39; Our companies are well positioned to withstand the important economic and structural challenges that retailers face. We are focused on building forward-looking, customer-focused companies with strong portfolios of brands that deliver long-term value. & # 39;
While in-store sales fell, online sales grew 46.8 percent and now represent 7.7% of total sales (stock image)
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