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This report explores the marketing channel problems that David Jones, a high-end Australian

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This report explores the marketing channel problems that David Jones, a high-end Australian department store chain, is currently experiencing. Since it was founded in 1838, David Jones has expanded to the 35 stores, two warehouse outlets, and the online site that it now operates. It is Australia’s second-largest department store chain and sells a range of the finest national and international brands. After suffering from a substantial decrease in sales and profits, David Jones implemented a Future Strategic Direction Plan in 2012, which saw its successful transformation into an omni-retailer, which consistent increases in the online sales since the new channel’s establishment. Woolworths Holdings Limited offered a takeover bid in 2014 …show more content…

The total sales figure also dropped from $1961.7 million in 2011 to $1867.8 in 2012, as shown in the graphs below (see Figure 1 & Figure 2) taken from the David Jones Limited 2013 Annual Report (2013). These results marked 2012 as the department store chain’s “worst performance in nine years” (Dent, 2012, para. 1).

Future Strategic Direction Plan
In response to the poor performance, David Jones unveiled its Future Strategic Direction Plan on 21 March 2012 (2012b), which aimed to address the company’s challenges through a “three point strategy” (2012a, p. 9). With an implementation process expected to prolong over time, the plan set out to transform the company into a leading omni-channel retailer whilst simultaneously growing the in-store network and strengthening the core business (2012a). Through their Future Strategic Direction presentation (2012a), David Jones has highlighted the following attributes as the company’s strengths:
• Leading branded department store in Australia
• Distinctive ‘Home of Brands’ positioning
• Best range of national and international brands
• Strong customer service heritage
• Excellent in-store design and ambience
• Stores conveniently located for our target customer base
• Strong brand affinity with loyal and attractive customer base
• Profitable and well positioned store portfolio

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