Country Road Group to withdraw almost 100 shopfronts from David Jones
Country Road, Witchery and Mimco plan to withdraw almost 100 of their 283 brand-operated shopfronts in David Jones stores, as their parent group focuses on improving its retail performance. The changes, due from February 2027, come as David Jones faces financial pressure and other luxury brands have also reduced their presence.
Country Road Group says it will cut its trading space by six per cent and remain in David Jones, with the brands and space varying by location. The group recorded a $21.7 million net loss in 2025-26 despite a one per cent sales rise, while its Australian division returned to full-year profitability. David Jones reported a pre-tax loss of $95.5 million.
- Three fashion brands will cut almost 100 David Jones shopfronts.
- The changes are scheduled for February 2027.
- David Jones reported a $95.5 million pre-tax loss.
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Country Road Group is an Australian fashion and lifestyle company that owns several retail brands, including Country Road, Witchery and Mimco. These brands operate dedicated shopfronts within David Jones department stores, where they display and sell their products to customers.
David Jones is a major Australian department store that features boutiques and concessions from various fashion and luxury brands. Brands pay to rent these spaces, which allows them to reach David Jones's customers whilst the department store benefits from the additional appeal these brands provide.
The retail industry has faced considerable financial pressure in recent years as consumer shopping patterns have shifted. This has prompted many fashion brands and department stores to reassess their strategies, leading some to reduce their retail presence or restructure their operations.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Country Road Group must make prudent business decisions to ensure long-term sustainability. The group's persistent losses despite modest sales growth indicate that the David Jones partnership is not delivering adequate returns on the substantial floor space invested. By rationalising its footprint, the company can redirect resources to more profitable channels, including e-commerce and other formats. The group remains committed to David Jones at reduced scale, reflecting industry-wide adjustments as luxury retailers optimise physical presence in response to structural retail challenges and changing consumer behaviour.
The case against
The withdrawal represents a significant loss of confidence in David Jones during acute financial distress, with the department store reporting a pre-tax loss of $95.5 million. When major tenants retreat during downturns, it can destabilise the entire retail ecosystem—fewer quality retailers discourage customers, exacerbating financial pressures and prompting cascading further withdrawals. This potentially harms David Jones employees, suppliers, and the broader sector. There is merit in measured tenant commitment during cyclical downturns rather than wholesale retreat that can transform temporary weakness into structural decline and retail instability.
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Originally published by Daily Mail as “Country Road, Witchery and Mimco pull pin on 100 David Jones shopfronts as department store battles $95.5million loss”.