David Jones Limited

Type: Public
On the web: http://www.davidjones.com.au

This Davy Jones isn't monkeyin' around. David Jones Limited is Australia's oldest department store, in operation since 1838 when settlers came to buy buckskins and ginghams. The national retail chain operates about 35 stores offering Australian and international brands of apparel, accessories, footwear, cosmetics, home furnishings, and food. Customers can apply for a David Jones credit card, and purchase gift cards, gourmet food baskets, and fresh floral arrangements. Additionally, they can make an appointment at a David Jones Hair and Beauty Salon, register for bridal or other special occasion gifts, consult with an in-store interior designer, or become a member of the David Jones Wine Club.

Key numbers for fiscal year ending July, 2008:
Sales: $2,120.5M
One year growth: 19.3%
Net income: $139.5M
Income growth: (21.4%)

Officers:
CEO and Director: Mark McInnes
CFO and Director: Stephen Goddard
Group General Manager, Information Technology: Karen McLachlan

Competitors:
Harris Scarfe Holdings
Harvey Norman Holdings
Woolworths Limited

Incorporated: 1920
NAIC: 452111 Department Stores (Except Discount Department Stores)

Sydney, Australia-based David Jones Ltd. stakes the claim as the world's oldest continuously operating department store; the company's original store opened at its George Street location in 1838. The company is also Australia's third-largest department store company, with revenues of A$1.7 billion in 2003. David Jones operates more than 30 stores across Australia, although the bulk of its operations are located on the country's eastern seaboard. Nonetheless, the group has regained a presence in western Australia, with the purchase of Perth-based Aherns in 1999. David Jones no longer owns most of its properties, having disposed of the real estate in sale-leaseback agreements, a move which gave the company cash needed for a vast store renovation drive. After an attempt to broaden its reach into the mass-market in the 1990s, the company has returned to its historic focus as a decidedly upscale retailer, stocking some 120 high-end fashion brands. In addition to apparel, the company also has strong sales in furniture and home furnishings. A launch at the beginning of the 2000s of a chain of gourmet grocery stores under the Foodchain name was abandoned in 2003, at which time the company took steps to reposition its online retail venture, David Jones Online, which offers retail sales of perfume, jewelry, and other gifts.

David Jones, born in Wales, arrived in the young city of Sydney, Australia, and in 1838 opened a general store catering not only to the growing population in town but also to the increasing numbers of people who chose to settle in the city's outlying areas. Jones chose the store's location wisely: a busy corner of Georges Street, directly across the street from the town's General Post Office. From the start, Jones emphasized textiles. At the same time, the store's emphasis on "the best and most exclusive goods" made it a favorite among Sydney's growing upper classes.

Jones retired, turning over the store to his business partners. Yet the new owners lacked Jones's retail touch, and the store was eventually taken over by its creditors. Jones himself came out of retirement, borrowing money and taking on new business partners in order to rebuild the store. Joining the store at this time was Jones's son Edward, who had spent some time abroad, where he discovered the newly developing European-styled "department store." Under Edward Jones, the George Street store was remodeled and expanded, and in 1887 he introduced the department store retail format to Sydney. The new store featured furniture and other household furnishings over several floors--and boasted Sydney's first hydraulic elevator. The new building also featured the company's growing mail order business, as the fame of the David Jones name spread throughout Australia.

David Jones had long relied on imports in order to stock its shelves, and boasted of items and fashions from all over the world. At the end of the century, however, the company decided to move against the high cost of imports, and in 1899 founded its own factory, on Sydney's Marlborough Street. Then one of the largest manufacturing plants in Australia, the new site supplied a wide range of goods to the store, including David Jones branded clothing. At the same time, however, the store remained one of the Australian gentry's main sources of goods and fashions from the United Kingdom and elsewhere.

The success of that operation and the company's growing retail and mail order sales led it to go public in the new century, as David Jones Ltd. In the 1920s the company began preparations to build a new store, buying a site spanning an entire block of in Sydney's Hyde Park neighborhood--a move criticized by some, given the location's remoteness from the city's main shopping district.

Construction went ahead, however, under Charles Jones, grandson of the founder, and the new store on Elizabeth Street opened in 1927. A far larger site, the new store was to remain the company's flagship store throughout its years of expansion. The opening of the site quickly attracted other retailers to the area, and before long, the Elizabeth Street store formed the core of the city's new retail center.

David Jones opened a third store in 1938, on Market Street around the corner from the Elizabeth street store. Such was the company's stature that then Prime Minister Billy Hughes presided over the new store's grand opening. This did not prevent the government from requisitioning the Market Street site for the Ministry of Munitions at the outbreak of World War II, however. The company continued operations at its other sites for the duration, despite rationing and the loss of a number of personnel to the war effort.

The postwar period marked a new era in the retail industry with the introduction of a new style of high fashion. David Jones soon became the fashion center of Australia, organizing its own runway shows to highlight the latest European fashions. The company's status among the fashion world was highlighted in 1948 when it brought over Christian Dior's famed "New Look" collection.

Australia's economic boom brought new fortune for David Jones, which became a key part of the Australian retail fashion industry in the 1950s. The company's growing sales, including its strong catalog sales, inspired it to expand into new regions of the country, and by 1959 the company boasted nine stores.

Initially sticking close to its New South Wales base, David Jones continued to grow during the ensuing decades, aided by the country's continued economic expansion in the 1960s. By the 1980s, the company had added stores in Queensland, Victoria, South Australia, and elsewhere. Not all of the group's expansions were successful, however. An attempt to move into western Australia, and especially the Perth region, failed in the 1970s. Faced with competition from such local stalwarts as Aherns, David Jones was forced to exit Perth at the end of the 1970s.

Nonetheless, at its height, the David Jones retail empire boasted more than 30 stores, and the company claimed the title as Australia's leading department store group. Adding to the group's growth was its acquisition of two rival chains: Georges and, more importantly, John Martins, which, centered on the Adelaide region, was acquired by David Jones in 1985.

The 1980s marked a new period of expansion for the group, as the social mood changed from the exclusivity of the 1970s to a new, more blatant focus on consumerism. Guiding that growth in the 1980s was Rod Mewing, who joined the company as director of operations in 1981. With Mewing, then just 33 years old, named managing director in 1986, David Jones underwent a new boom, becoming a magnet for a new breed of brand-conscious shoppers amid a generalization of the luxury goods market.

During the decade, David Jones began refurbishing its stores, especially the Elizabeth Street flagship store, which opened its famed seventh floor designer boutique. The company also rolled out new in-store retail concepts, such as food halls, in the 1980s. The emphasis on high-end, high-quality (and high-margin) goods in the 1980s made David Jones one of Australia's fastest-growing retailers.

It also brought the company to the attention of empire builder John Spalvins. One of a host of a new-breed of Australian tycoons, which included Rupert Murdoch, Alan Bond, and the Kerry family, Spalvins went on his own buying spree in the late 1980s, cobbling together a vast and extraordinarily diversified collection of businesses. In 1990, Spalvins orchestrated a merger among his company, Adelaide Steamship, and David Jones, Tooth & Co. and Industrial Equity Ltd. The resulting company, known as Adsteam, became one of Australia's largest businesses, with interests in a variety of industries, including the retail market; in addition to David Jones, the company controlled Australia's leading food retail group, Woolworths.

Financed by debt and pummeled by a global recession, Adsteam began to teeter from the outset. By 1992, as its losses neared A$750 million ($500 million), Spalvins had been removed from the company, and Adsteam had been taken over by its creditors. Adsteam then began selling off its assets, including the Woolworth chain, which was floated in one of Australia's largest-ever public offerings in 1993.

Despite the tribulations at its parent company, the David Jones arm prospered at the beginning of the decade, continuing to outpace rival retailers. Part of the group's success was due to Mewing's decision to expand the David Jones brand range, which enabled the company to generate a new image for itself as a high-value retailer--a move that brought the company high margins as well. By 1993, David Jones's revenues had risen to A$1.3 billion.

Mewing left the group in 1994 as Adsteam prepared to spin off David Jones as public company. In Mewing's place came Chris Tideman, a retailing veteran brought in from England. Tideman brought David Jones through its well-publicized public offering (IPO), an event that included wrapping the Elizabeth store in the company's trademark houndstooth fabric. Valuing the company's 33 stores, including a number of John Martins stores, at some A$750 million, the company's stock was priced at A$2 per share. Shares were marketed in part as an opportunity for the country's "mum and dad" investors to grab a piece of Australian retailing history.

Further Reading

"Chairman to Leave DJs Helm," Advertiser, June 4, 2003, p. 2.

Jimenez, Katherine, "David Jones Glosses Loss," Australian, September 24, 2003, p. 37.

------, "DJs Counts on Sales Spike Despite Hike," Australian, November 6, 2003, p. 21.

Moran, Jonathan, "DJs Boss Ready to Improve Fortunes," Daily Telegraph (Australia), September 24, 2003, p. 49.

Murdoch, Scott, "David Jones Lifts Sales to Impress Critical Market," Courier-Mail, November 6, 2003, p. 30.

"Retailer Keeps Up with the Joneses," Herald Sun, October 12, 2000, p. 30.

— M.L. Cohen

This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (October 2007)

David Jones Limited

Type	Public (ASX: DJS)
Founded	1838, Sydney, Australia
Founder(s)	David Jones
Headquarters	Sydney, Australia
Area served	Australia
Industry	Retail
Products	Cosmetics, fashion, homewares, furniture, electrical, food
Revenue	AUD$1.98 billion (2007)[citation needed]
Website	www.davidjones.com.au

David Jones Limited (ASX: DJS), colloquially known as DJs, is an Australian retailer. Its primary business is an Australia-wide chain of premium department stores.

David Jones was founded in 1838 by David Jones, a Welsh immigrant, and is claimed to be the oldest continuously operating department store in the world still trading under its original name.^[1][2] It currently has 37 stores located in most Australian states and territories.

A traditional department store, it retails fashion, cosmetics, homewares, electronics as well as other products. David Jones' main department store rival is Myer.

Contents 1 History 2 Business longevity 3 Branding 4 Stores 4.1 Store Locations 4.2 Flagship Store 5 Credit and store cards 6 Gallery 7 References 8 External links

History

David Jones was a Welsh merchant who met Hobart businessman Charles Appleton in London. Appleton had established a store in Sydney in 1825 and Jones subsequently established a partnership with Appleton, moved to Australia in 1835, and the Sydney store became known as Appleton & Jones. When the partnership was dissolved in 1838, Jones moved his business to premises on the corner of George Street and Barrack Lane, Sydney. Jones survived the depression of the 1840s, and by 1856 had retired from active management of the business. A few years later when the firm failed he returned to manage its affairs and in a few years had fully discharged all obligations to his creditors.^[3] By 1887, the George Street store had been rebuilt and a mail order facility introduced. A factory was opened in Marlborough Street, Sydney to reduce reliance on imported goods.

In 1906, David Jones announced it would become a public company.^[4] The Elizabeth Street was opened in 1927 under the guidance of chairman Charles Lloyd Jones. A further store was opened in Market Street, Sydney in 1938. In 1954, a State banquet was held for visiting Queen Elizabeth II in the restaurant of the Elizabeth Street store.^[1]

By 1959, the store network expanded to eight stores, and by 1980 David Jones had moved into Queensland, ACT, Victoria and South Australia.^[1]

In 1980, the Adelaide Steamship Company acquired a substantial interest in David Jones. Through the 1980s and into the 1990s, the two companies involved themselves in a complex company structure whereby they each owned about half of each other and, financed by huge borrowings, they acquired a portfolio of other companies. In 1982, a David Jones store opened in Melbourne for the first time, having acquired and rebranded department store Buckley & Nunn. In 1985, David Jones acquired the Adelaide department store John Martins, (their second department store in Adelaide's prime retail strip, Rundle Mall). Other acquisitions included Petersville Sleigh, Buffum's, Tooth and Co., Penfolds and numerous others.^[5] The recession of the early 1990s caused the nervous lenders, (over 200 banks), to demand the return of their assets. This forced the liquidation of the porfolio at "fire-sale" prices, and led the two companies into bankruptcy; the worthless Adelaide Steamship Company was renamed "Residual Assco Ltd" and was delisted. The worthless David Jones Limited was renamed "DJL". A number of the assets with value were very successfully sold off via public floats, in particular, National Foods, Woolworths, and the department store assets of DJL were floated as "David Jones Limited". (More information can be found at Tooth and Co.#Takeover and Tooth and Co.#The three ugly sisters

In 1995, David Jones announced a $800 million public float of the David Jones and John Martin retail operations. The "new" David Jones Limited was subsequently listed on the Australian Stock Exchange with a new ASX code of DJS.^[4]

Business longevity

David Jones' flagship building on the corner of Elizabeth Street and Market Street, Sydney

Changes in management saw DJs falter in the late 1990s. A major strategic review in 2003 saw the closing of its two unprofitable stores, the loss-making David Jones Online web-based business and its gourmet food retail stores, Foodchain. It revitalised many of its stores, including its flagship Elizabeth Street and Market Street stores in Sydney (two individual buildings, linked by an underground arcade). Since then its profitability - and profile - has improved, thanks to a combination of a consumer spending boom in 2003-2004,^{[citation needed]} and the securing of exclusive deals with many high-profile Australian and international brands (often marketed as 'Available at no other department store'.)^{[citation needed]}

In recent times, a slowdown in the upscale department store market has hurt both David Jones and its chief competitor, Myer (formerly part of the Coles Myer group, now renamed the Coles Group). The separation and public float of the department store assets in 1995 resulted in structural and cultural changes which saw periods of stagnancy and high staff turnover. Shares initially offered at A$2 fell as low as A$0.90, but have since reached highs of over A$4.50 (prior to the 2008 "Global Financial Crisis"). DJs is also notable for being one of the few remaining companies in Australia which offers discounts to its shareholders.^{[citation needed]}

It has weathered and grown strong from the massive shift in Australian retailing away from department stores towards specialist retailers and suburban shopping malls. In contrast, Myer — once the most popular department store in Australia — had faltered, to the point that its former parent company (Coles Myer) sold the department store to a consortium of American investors.

Branding

Elizabeth Street entrance in Sydney

David Jones' branding - a black-on-white houndstooth pattern - is one of the most recognised corporate identities in Australia. A government sponsored panel judged it in 2006 as one of Australia's top ten favourite trade marks.^[6] The origin of this motif owes itself to the insistence of its founder on not using the store's name on its packaging. His aim was that the store would be so well known that everyone should recognise it simply by this now-famous motif.^{[citation needed]}

Model Megan Gale has been a prominent public face for David Jones since 2001, appearing in its annual fashion parades until retiring in 2008^[7]. Model Miranda Kerr was subsequently named to take over from Gale as David Jones' "face" for catwalk and catalogue appearances.^[8]. Celebrities used by David Jones in recent times include Liz Hurley^[9] and Kim Cattrall.^[10]

Six stores have food halls which are viewed as a key part of the David Jones brand, emphasising quality and style, yet have come under recent criticism.^[11] The failed Foodchain experiment - effectively a smaller chain of standalone food halls - was sold to the parent company of Freedom Furniture in 2003 after it proved unprofitable.^[12]

Stores

David Jones Melbourne

David Jones has department stores in all Australian capital cities except Hobart and Darwin, two stores in Newcastle, and stores in Tuggerah (opened 1995), Wollongong and Robina (Gold Coast). Within NSW, David Jones established its first store in Newcastle by acquiring Scott's department store on Hunter Street in 1958.^[13] It expanded interstate by acquiring Buckley & Nunn (Melbourne) in 1982, John Martins (Adelaide) in 1985 and Aherns (Perth) in 1999. David Jones also owned the former 'Georges' store in Collins Street, Melbourne between 1981 and 1995.^{[citation needed]}

All stores are located in major retail precincts and shopping malls. In 2007, David Jones recast its criteria for store locations, reflecting CEO Mark McInnes' intention to concentrate on "low risk, high value locations"^[14]

As a result, stores in Sydney at Centro Bankstown (closed July 2007) and Westfield Eastgardens (October 2007) were replaced by Myer. However, David Jones replaced the Myer store in Westfield Burwood in May 2007 and opened a new store at Westfield Chermside in August 2007 and a new store at QueensPlaza, Brisbane in February 2008.

In January 2008, David Jones announced that the Claremont store (Western Australia) would be closed in 2009 to allow for a complete rebuilding to reopen in 2011 that will increase its size by 60%. ^[15]

David Jones has formally announced other new stores:

• Westfield Fountain Gate, Melbourne between 2009-2012^[16]
• Sunshine Plaza, Maroochydore, 2012^{[citation needed]}
• Macquarie Centre, Sydney, mid 2011 ^[17]
• Pacific Fair, Gold Coast, late 2011 ^[17]
• Westfield Whitford City, Perth, early 2012 ^[17]

Store Locations

Australian Capital Territory

• Canberra
  • Civic (Canberra Centre)
  • Woden (Westfield Woden)

New South Wales

• Central Coast
  • Tuggerah (Westfield Tuggerah)
• Newcastle
  • Newcastle CBD (Hunter Street) closing in 2010 with 2012 re-opening
  • Kotara (Westfield Kotara) undergoing full refurbishment and addition of third level in 2009-2010 prior to closure of Newcastle store
• Sydney
  • Birkenhead Point (Birkenhead Point - DAVID JONES WAREHOUSE OUTLET)
  • Bondi Junction (Westfield Bondi Junction)
  • Brookvale (Warringah Mall)
  • Burwood (Westfield Burwood)
  • Castle Hill (Castle Towers)
  • Chatswood (Chatswood Chase)
  • Hornsby (Westfield Hornsby)
  • Macarthur (Macarthur Square)
  • North Ryde (Macquarie Centre) opening in mid 2011 as part of centre expansion
  • Miranda (Westfield Miranda)
  • Parramatta (Westfield Parramatta)
  • Sydney CBD (Elizabeth Street)
  • Sydney CBD (Market Street)
• Wollongong
  • Wollongong CBD (Crown Street)

Queensland

• Brisbane
  • Brisbane CBD (Queens Plaza)
  • Carindale (Westfield Carindale)
  • Chermside (Westfield Chermside)
  • Toombul (Centro Toombul)
  • Toowong (Toowong Village)
  • Upper Mt Gravatt (Westfield Garden City)
• Gold Coast
  • Biggera Waters (Harbour Town - DAVID JONES WAREHOUSE OUTLET)
  • Broadbeach (Pacific Fair) opening in late 2011 as part of centre expansion
  • Robina (Robina Town Centre) presently being refurbished in stages until early 2009
• Sunshine Coast
  • Maroochydore (Sunshine Plaza) opening 2012

South Australia

• Adelaide
  • Adelaide city centre (Rundle Mall)
  • Marion (Westfield Marion) undergoing full refurbishment in 2009-2010 prior to and during Westfield redevelopment
  • West Lakes (Westfield West Lakes)

Victoria

• Melbourne
  • Chadstone (Chadstone Shopping Centre)
  • Cheltenham (Southland Shopping Centre)
  • Doncaster (Westfield Doncaster)
  • Glen Waverley, Victoria (Centro The Glen)
  • Melbourne CBD (Bourke Street Mall) currently undergoing major refurbishment due for completion pre-Christmas 2009
  • Melbourne CBD (Little Collins Street)
  • Melbourne CBD (Little Bourke Street)
  • Narre Warren (Westfield Fountain Gate) opening mid 2013

Western Australia

• Perth
  • Booragoon (Garden City)
  • Claremont (Claremont Shopping Centre) main store (fashion, cosmetics, accessories) currently closed to undergo full refurbishment with opening scheduled for early 2011. Home store (homewares, travelgoods) is still trading with departments to be incorporated into new store and closure of home store due in 2011.
  • Karrinyup (Karrinyup Shopping Centre) undergoing full refurbishment in 2009-2010 with possible expansion to 14,000 sq.m
  • Perth CBD (Hay Street Mall)
  • Whitford (Westfield Whitford City) opening in early 2012 as part of centre expansion

Flagship Store

David Jones flagship store:

• Sydney - The Elizabeth Street and Market Street stores in the CBD are linked together by a two-storey high walkway, and an underground shopping mall.

Credit and store cards

David Jones derives about 30 per cent of its annual earnings from its store cards. In February 2008, it announced it would be launching a David Jones American Express card before Christmas 2008 and would transfer its $400 million store card receivables (representing 400,000 cardholders) to American Express. ^[18] It is also considering additional financial services such as insurance and home loans under its brand. ^[19]

Gallery

David Jones at Woden Town Centre in Canberra

David Jones - second floor at QueensPlaza in Brisbane (Queen Street Mall end)

David Jones - second floor at QueensPlaza in Brisbane (Adelaide Street end)

References

1. ^ ^{a b c} "Story of David Jones". David Jones. http://www.davidjones.com.au/about/story_of_djs.jsp. Retrieved on 2008-05-09. 
2. ^ Company History, Answers.com. Retrieved on 4 July 2009.
3. ^ "Jones, David (1793-1873) Biographical Entry". Australian Dictionary of Biography. http://www.adb.online.anu.edu.au/biogs/A020022b.htm. Retrieved on 2008-02-22. 
4. ^ ^{a b} "David Jones Limited (1906 - )". Guide to Australian Business Records. http://www.gabr.net.au/biogs/ABE0064b.htm. Retrieved on 2008-05-09. 
5. ^ "Annual Report to Shareholders, 1990", The Adelaide Steamship Company.
6. ^ "IP Australia - Trademarks Centenary 2006". Australian Government. 2006. http://www.ipaustralia.gov.au/tmcentenary/top10.html. Retrieved on 2008-08-18. 
7. ^ "Catwalk an art form: Megan Gale". National Nine News. 2008-02-28. http://news.ninemsn.com.au/article.aspx?id=86977. Retrieved on 2008-06-19. 
8. ^ "Miranda Kerr the new face of David Jones". The West Australian. 2008-04-24. http://www.thewest.com.au/aapstory.aspx?StoryName=477431. Retrieved on 2008-06-19. 
9. ^ "Hurley's charms". The Age, Melbourne. 2005-09-01. http://www.theage.com.au/news/fashion/hurleys-charms/2005/08/31/1125302632634.html. Retrieved on 2008-06-18. 
10. ^ "Cattrall shows her sex smarts". Sydney Morning Herald. 2005-12-18. http://www.news.com.au/heraldsun/story/0,21985,17598728-2902,00.html. Retrieved on 2008-06-19. 
11. ^ "Food hall failing, says expert". Sydney Morning Herald. 2008-01-28. http://business.smh.com.au/food-hall-failing-says-expert-20080127-1oh0.html. Retrieved on 2008-06-19. 
12. ^ "Freedom picks up Foodchain stores". 2003-06-03. http://www.theage.com.au/articles/2003/06/03/1054406173833.html. Retrieved on 2008-06-19. 
13. ^ http://www.newcastle.nsw.gov.au/__data/assets/pdf_file/0020/17507/heritagewalkfurtherinfo.pdf
14. ^ Retail blues, Business Sunday, ninemsn.com.au
15. ^ David Jones announces that its Claremont store will be completely rebuilt, Press Release, 30 Jan 2008, accessed 2008-11-28.
16. ^ David Jones results for third quarter of the 2007 financial year, Press Release, 9 May 2007.
17. ^ ^{a b c} New & Refurbished Stores, davidjones.com.au
18. ^ "Amex is branded card partner for DJs". Sydney Morning Herald. 2008-02-19. http://news.smh.com.au/amex-is-branded-card-partner-for-djs/20080220-1t8k.html. Retrieved on 2008-02-21. 
19. ^ Retailers take on the banks…again, Australian Financial Review, 30 January 2008, pp. 1, 61 

External links

• Official website

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