By Chris Nicholls
SYDNEY: David Jones has announced a 3.8 per cent rise in sales for the third quarter this year, but admitted slow sales reflected current market troubles and big ticket items, such as electrical, were hardest hit.
Total sales revenue came to $453.3 million, up from $436.7 million for the same quarter last year, while like-for-like sales rose by only 2.3 per cent. All states showed softer growth, with the best being Queensland and Victoria.
“Our third quarter sales performance reflects the slowdown in consumer spending that we were anticipating and had started to plan for more than 18 months ago. Our business is in good shape and we are well placed for the expected continuing environment of softer demand,” said David Jones chief executive Mark McInnes.
McInnes said that placement came from using the last 18 month’s growth to put in place measures to ensure inventory levels and costs had been adjusted to reflect the current economic conditions.
However, McInnes did admit that while clothing and cosmetics has withstood the buffeting, “sales in big ticket categories, such as electricals, furniture and homewares were the hardest hit.”