New stores and refurbishments to further improve David Jones sales growth

In addition to its impressive profit results just released, David Jones CEO David McInnes, also highlighted that its proposed new stores and refurbishments are set to boost sales a further 15 to 25 per cent.

McInnes discussed that the company is currently in active negotiations to open four new stores in Sunshine Plaza (Sunshine Coast, Qld), Whitford (Perth, WA), Macquarie Centre (Sydney, NSW) and Pacific Fair (Gold Coast, Qld).

These new stores coupled with the company redevelopment of its Bourke Street Melbourne CBD flagship store (which will increase sell space by 30 per cent) and the rebuilding of the Claremont store (which will almost double in size) is expected to deliver an increase of approximately 15 to 25 per cent in sales growth and selling space over the medium term.

“Our new store, rebuild and refurbishment strategy will deliver strong growth in our core business and has the added benefit of being low risk as it is fully funded and relates to attractive demographic areas where our brand is best suited” McInnes said.

“Furthermore, our new store strategy reinforces our unique market position with new stores being located in high-income demographic areas, with large catchments and within high value shopping centres.”

In addition to this McInnes also highlighted that the new Doncaster (Vic) store that opened in October 2008 has performed very well for the retailer. The new store is on track to deliver $55 to $60 million in sales and $7 to $8 million of EBIT in its first full financial year of trading.

“Our new Doncaster store has significant opportunity to ramp up its sales and EBIT contribution as the store matures and is an excellent example of the calibre and quality of new stores that we have announced to date,” he said.

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