David Jones forgets it's 2012

Imagine for a moment it's 1996. Jeans are looser, John Howard has just taken the reins, and The Spice Girls are topping the charts. Aussie retailers are just about to experience an incredibly long and prosperous boom.

The internet is in its infancy. Amazon and eBay are just start ups. Retailing is—as it has been for the past century—a wholly local affair centred around 'bricks and mortar' stores. But it's all about to change.

Fast forward a decade and the boom is in full swing. The internet has thrived, and is driving a generation-defining change to the way we relate, communicate—and shop. The internet has made the world of commerce transparent and global. Early clunky websites, which were no more than online catalogues, have been superseded by interactive and engaging 'online portals'. Facebook is already two years old, and growing fast.

Retailers have started to realise that the future is online. Amazon and eBay have built massive empires facilitated by this new technology.

Aussies fail to keep up

Australian retailers though mostly failed to adapt. Of course, retailers weren't alone. Just ask Roger Corbett over at Fairfax.

In 2006 David Jones customers wouldn't have noticed a vastly different shopping experience from a decade earlier. The eerie green glow of the circa 1985 point of sale system (PoS) provided familiar reassurance with every transaction; even if it was a bit slow.

David Jones had attempted to move online early, but its early 2000s effort wasn't supported and then chief executive Mark McInnes decided to shelve the online store to focus on in store sales.

Is it really 2012?

Skip forward to 2012 and current chief executive Paul Zahra is busily trying to fix the ailing retailer. The boom is gone, and not enough was spent during the good times to see DJs through. The ancient PoS remains; although it is finally slated for retirement.

And DJs is making a return to the online world, as the company finally admits online is an important part of any retailer's strategy. 'Omni-channel' is my pick for management buzzword of 2012.

Since they're coming to the party fairly late you'd expect DJs to want to wow us to make up for the tardiness. They've certainly tried.

Last week DJs launched a new online store, including a mobile device friendly version. They've also launched an iPad magazine (which, as an aside, is very good).

Is it any good?

I'll let you decide. Check out DJ's new site here, and now spend five minutes comparing it to Harrods, Mr Porter or Amazon.

That effectively answers the question doesn't it?

Still, here's my take.

There are some really cool features. The curated collections, where stock is sorted by style or occasion, is a smart idea (maybe Zahra read my earlier post?). As is the search function and the general layout is excellent; simple and classy befitting of the DJ's brand.

What a strange way to order brands...

It's the poor attention to detail that's frustrating.

Here are the most obvious issues: there's no 'you might also like' suggestions (e.g. like Amazon), social media sharing functions don't seem to work on iPad, brands are ordered by no. of stock keeping units (SKUs) rather than alphabetically, and you can only order up to ten of any item; not so helpful if you want to buy a case of wine.

These are basic omissions that should be fixed. In fact, DJ's online store has been up and down all day, so maybe they are addressing some of these issues.

Other features which would have been nice to see include: videos of clothing products (similar to Burberry or Mr Porter), 3D product rotations, an option to pick up in store, and a link between the online and offline stores, perhaps via QR codes.

This would be a great website if it had been launched in 2007. For 2012, it's adequate but hardly inspiring. And in a retail market that is getting more competitive it needs to be better.

What do you think? Will you be using the DJs online store?

For more research on Aussie stocks, including our latest on David Jones, head to Intelligent Investor Share Advisor.