DJs aiming higher with smaller stores
The search is also on for new sites in neighbourhood strips across the country, of about 7000 square metres, based on the village format store in Malvern.
It is one of the most thorough reviews being planned by the department store owner in many years, because in the past the leases were automatically rolled over, despite the performance of the store.
But in the next five years there are six stores where the leases will expire and it is expected the retailer will exit and use the opportunity to take up smaller spaces in locations better suited to its prestige demograhics.
Traditionally landlords start negotiating commercial leases at least a year before they expire. But if the tenant is exiting, the owner needs notice to plan for any redevelopment to minimise downtime between leases.
Outgoing chief executive Paul Zahra said at the recent results that the current portfolio consisted of 38 stores, of which six leases, in "less robust demographies", were due to expire in the next five years and another three stores would open by 2016 "in attractive demographies".
Suburbs such as Mosman in Sydney and Toorak in Melbourne will be targeted for smaller, village-style stores, if space of about 7000 square metres can be found.
"These lease expiries give us the opportunity to review our store portfolio in light of our broader omni-channel retail strategy," Mr Zahra said.
He said the focus was to develop the smaller, village format like the new store at Malvern, where gross lettable area generated 85 per cent of sales, (in a smaller space) than the current 75 per cent. "In the 2010 financial year, about 73 per cent of our gross lettable area was 'selling space'. We have increased this to a current average of 76 per cent and are working towards improving this to 85 per cent of selling space in our new stores and 80 per cent in our refurbished stores."
He said the smaller format store was a concept David Jones has said it will roll out further. "Success at Malvern will be an important precursor to further openings," he said.
Frequently Asked Questions about this Article…
David Jones is reviewing its property portfolio as it approaches a period of lease expiries and plans to redevelop stores into smaller formats. This review is part of a broader strategy to optimize store locations and sizes to better suit its prestige demographics.
David Jones is reviewing its property portfolio as it approaches a period of lease expiries and plans to redevelop stores into smaller formats. This review is part of a broader strategy to optimize store locations and align with their omni-channel retail strategy.
David Jones is focusing on a smaller, village-style store format, similar to its successful Malvern store. These stores are about 7,000 square meters and are designed to generate a higher percentage of sales from a smaller space.
David Jones is focusing on a smaller, village-style store format, similar to their successful store in Malvern. This format aims to increase the percentage of selling space and improve sales efficiency.
In the next five years, six David Jones stores have leases that are due to expire. The company plans to use this opportunity to exit less robust demographics and focus on more attractive locations.
There are six David Jones stores with leases set to expire in the next five years. The company plans to use these expiries as an opportunity to transition to smaller spaces in more suitable locations.
David Jones is targeting suburbs like Mosman in Sydney and Toorak in Melbourne for its new, smaller village-style stores, provided suitable space can be found.
David Jones is targeting suburbs like Mosman in Sydney and Toorak in Melbourne for new, smaller village-style stores, provided they can find suitable spaces of about 7,000 square metres.
The new store format at David Jones, as seen in the Malvern store, has increased the percentage of gross lettable area generating sales to 85%, compared to the previous 75%. This indicates a more efficient use of space in driving sales.
The new smaller store format allows David Jones to increase the percentage of selling space, which has been shown to generate a higher percentage of sales. This format is more efficient and aligns with their strategy to enhance customer experience.
The Malvern store is significant for David Jones as it serves as a successful model for the new smaller, village-style format. Its success is considered a precursor to further openings of similar stores.
The Malvern store serves as a successful model for David Jones' new smaller, village-style format. Its success is seen as a precursor to further openings and is integral to the company's strategy of optimizing store performance.
David Jones' strategy involves reviewing and optimizing its store portfolio in line with its omni-channel retail strategy. This includes focusing on smaller, more efficient store formats in locations that align with its target demographics.
David Jones plans to exit some locations with expiring leases and open new stores in attractive demographics. This shift aims to better align their store portfolio with their target market and improve overall sales performance.
David Jones is improving its selling space efficiency by increasing the percentage of gross lettable area used for sales. The goal is to reach 85% in new stores and 80% in refurbished stores, up from a previous average of 76%.
David Jones is working to increase the percentage of gross lettable area dedicated to selling space. They have already improved from 73% in 2010 to a current average of 76%, with goals to reach 85% in new stores and 80% in refurbished ones.
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