1S DAVID JONES ON THE THRESHOLD OF SUCCESS? David Jones (DJs) is a leading speciality retailer in competition in Australia with Myers. Both are well established in major cities and both have good stables of branded clothing to sell to a wide range of clients. With rising incomes, the demographics are looking good for both companies, so long as they can capture customers. ----replaced as CEO by John Dixon, a veteran of British DJs was taken over in late 2014 by South Africa's Woolworths (a different firm to the Australian company with the same name). The price was A$21 billion, and the South Africans also obtained the clothing brand Country, Woolworths. The issue was said to be the pace of change, Road at about the same time. The differentiation strátegy that DJs has always followed has since been fine-tuned. The market for such speciality department stores is growing at 7 per sent per year compared with 2 per cent per year for standard department stores. The CEO at the time of the keover, lain Nairn, claimed change was necessary to take advantage of this huge potential market because DIs had "lost its way'. The firm is now focusing more on Asian customers, putting greater emphasis on its credit ids (and using them to gather more data), providing diferent incentive systems to staff and becoming far imore sales oriented generally. As well, its stores are being UPgraded, with up to A$400 million being devoted to tlht Country Road, meanwhile, will be rolled out to mare Djs stores and have far more prominence in these torustas will Witchery and Mimco. Country Road will korger more of its own stores, with eight more planned. in D generally, more private brands are being sold Faise the profit margins for them are better than those nre brands. DJs core market of luxury shoppers will be well served by these initiatives. Better service and more attractive shops will be sure to appeal. At the same time, Myers is trying to revive its stores with better layouts and staff-the race is on. More change came to DJs in late 2015. Ian Nairn was retailer Marks & Spencer. DJs suggested that Nairn's move was for personal reasons but rumours spread that it was because of tensions with lan Moir, the head of specifically getting more private labels in the ștore, such as Studio W, JT One, RE and Distraction. Moir wanted quicker implementation of this strategy and Nairn wanted a slower transition. Nairn also favoured the more traditional premium-brand strategy. On his appointment, Dixon said that the DJs food business was a litde tired', and since his main job at Marks & Spencer concerned food he knew how to revive it. Mr Moir also has strong views on this. He wants a more exciting scene for the 'food halls' in order to make them a favourite destination for shoppers, and more excitement in the food areas with varied scents and bustling people. Dixon also said that DJs 'ticks all the boxes' and lies 'at the heart of Australian society'. It remains to be seen if he can lead DJs to greater success in this competitive segment in department stores. The market is expanding. Can DJs take advantage of it? Sources: S. Evans, 2015, Can Djs hack the new labels push?, The Age, 3-4 October, P. Tocaro & G. Korporaal, 2015, New DJs boss has a tasse for food, The Australian, 2 Ocuober, E. Greenblar, 20LS, New strategy for David Jones, The Australian, 25 May.

1S DAVID JONES ON THE THRESHOLD OF SUCCESS? David Jones (DJs) is a leading speciality retailer in competition in Australia with Myers. Both are well established in major cities and both have good stables of branded clothing to sell to a wide range of clients. With rising incomes, the demographics are looking good for both companies, so long as they can capture customers. ----replaced as CEO by John Dixon, a veteran of British DJs was taken over in late 2014 by South Africa's Woolworths (a different firm to the Australian company with the same name). The price was A$21 billion, and the South Africans also obtained the clothing brand Country, Woolworths. The issue was said to be the pace of change, Road at about the same time. The differentiation strátegy that DJs has always followed has since been fine-tuned. The market for such speciality department stores is growing at 7 per sent per year compared with 2 per cent per year for standard department stores. The CEO at the time of the keover, lain Nairn, claimed change was necessary to take advantage of this huge potential market because DIs had "lost its way'. The firm is now focusing more on Asian customers, putting greater emphasis on its credit ids (and using them to gather more data), providing diferent incentive systems to staff and becoming far imore sales oriented generally. As well, its stores are being UPgraded, with up to A$400 million being devoted to tlht Country Road, meanwhile, will be rolled out to mare Djs stores and have far more prominence in these torustas will Witchery and Mimco. Country Road will korger more of its own stores, with eight more planned. in D generally, more private brands are being sold Faise the profit margins for them are better than those nre brands. DJs core market of luxury shoppers will be well served by these initiatives. Better service and more attractive shops will be sure to appeal. At the same time, Myers is trying to revive its stores with better layouts and staff-the race is on. More change came to DJs in late 2015. Ian Nairn was retailer Marks & Spencer. DJs suggested that Nairn's move was for personal reasons but rumours spread that it was because of tensions with lan Moir, the head of specifically getting more private labels in the ștore, such as Studio W, JT One, RE and Distraction. Moir wanted quicker implementation of this strategy and Nairn wanted a slower transition. Nairn also favoured the more traditional premium-brand strategy. On his appointment, Dixon said that the DJs food business was a litde tired', and since his main job at Marks & Spencer concerned food he knew how to revive it. Mr Moir also has strong views on this. He wants a more exciting scene for the 'food halls' in order to make them a favourite destination for shoppers, and more excitement in the food areas with varied scents and bustling people. Dixon also said that DJs 'ticks all the boxes' and lies 'at the heart of Australian society'. It remains to be seen if he can lead DJs to greater success in this competitive segment in department stores. The market is expanding. Can DJs take advantage of it? Sources: S. Evans, 2015, Can Djs hack the new labels push?, The Age, 3-4 October, P. Tocaro & G. Korporaal, 2015, New DJs boss has a tasse for food, The Australian, 2 Ocuober, E. Greenblar, 20LS, New strategy for David Jones, The Australian, 25 May.

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Discuss how David Jones effectively build relationships with customers.

Transcribed Image Text:1S DAVID JONES ON THE THRESHOLD OF SUCCESS? David Jones (DJs) is a leading speciality retailer in competition in Australia with Myers. Both are well established in major cities and both have good stables of branded clothing to sell to a wide range of clients. With rising incomes, the demographics are looking good for both companies, so long as they can capture customers. ----replaced as CEO by John Dixon, a veteran of British DJs was taken over in late 2014 by South Africa's Woolworths (a different firm to the Australian company with the same name). The price was A$21 billion, and the South Africans also obtained the clothing brand Country, Woolworths. The issue was said to be the pace of change, Road at about the same time. The differentiation strátegy that DJs has always followed has since been fine-tuned. The market for such speciality department stores is growing at 7 per sent per year compared with 2 per cent per year for standard department stores. The CEO at the time of the keover, lain Nairn, claimed change was necessary to take advantage of this huge potential market because DIs had "lost its way'. The firm is now focusing more on Asian customers, putting greater emphasis on its credit ids (and using them to gather more data), providing diferent incentive systems to staff and becoming far imore sales oriented generally. As well, its stores are being UPgraded, with up to A$400 million being devoted to tlht Country Road, meanwhile, will be rolled out to mare Djs stores and have far more prominence in these torustas will Witchery and Mimco. Country Road will korger more of its own stores, with eight more planned. in D generally, more private brands are being sold Faise the profit margins for them are better than those nre brands. DJs core market of luxury shoppers will be well served by these initiatives. Better service and more attractive shops will be sure to appeal. At the same time, Myers is trying to revive its stores with better layouts and staff-the race is on. More change came to DJs in late 2015. Ian Nairn was retailer Marks & Spencer. DJs suggested that Nairn's move was for personal reasons but rumours spread that it was because of tensions with lan Moir, the head of specifically getting more private labels in the ștore, such as Studio W, JT One, RE and Distraction. Moir wanted quicker implementation of this strategy and Nairn wanted a slower transition. Nairn also favoured the more traditional premium-brand strategy. On his appointment, Dixon said that the DJs food business was a litde tired', and since his main job at Marks & Spencer concerned food he knew how to revive it. Mr Moir also has strong views on this. He wants a more exciting scene for the 'food halls' in order to make them a favourite destination for shoppers, and more excitement in the food areas with varied scents and bustling people. Dixon also said that DJs 'ticks all the boxes' and lies 'at the heart of Australian society'. It remains to be seen if he can lead DJs to greater success in this competitive segment in department stores. The market is expanding. Can DJs take advantage of it? Sources: S. Evans, 2015, Can Djs hack the new labels push?, The Age, 3-4 October, P. Tocaro & G. Korporaal, 2015, New DJs boss has a tasse for food, The Australian, 2 Ocuober, E. Greenblar, 20LS, New strategy for David Jones, The Australian, 25 May.

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