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David Jones weighs closures as it considers shrinking to 12–20 stores
David Jones is reviewing its Australian store network and may close dozens of locations as it seeks to reduce its 38 stores across Australia and New Zealand to between 12 and 20. The review matters because it signals a sharp contraction for the department store chain, which has also confirmed it is examining trading terms with suppliers and brand partners.
Five reportedly loss-making Westfield stores are under review: Carousel in Perth, Parramatta and Hornsby in Sydney, Woden in Canberra, and Southland in Melbourne. Auditor PwC had not signed off the retailer’s accounts, which were due to be lodged by 30 October; retail analyst Barry Urquhart said the business had been in trouble for some time, citing the pandemic’s impact on cash flow and debt. David Jones was bought by Woolworths Holdings for about $2.1 billion in 2014 and its operating business was reportedly sold to Anchorage Capital Partners for $100 million in 2023.
In short
- David Jones is reviewing its Australian stores and may close dozens.
- Its network could shrink from 38 locations to between 12 and 20.
- Five loss-making Westfield stores are reportedly under review.
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The case for
Reducing the store network could help David Jones focus investment on locations that are more viable, improve its finances and sustain the business over the long term. Reviewing supplier terms alongside store closures may be part of a broader effort to make the retailer more competitive and protect jobs and services at its remaining stores.
The case against
Closing stores risks reducing customer access, disrupting workers and suppliers, and weakening the chain’s presence in communities where it has operated. A sharp contraction may also make David Jones less attractive to customers and brands, potentially deepening the difficulties it is intended to address.
Explained simply
David Jones is an Australian department store chain that sells clothing, beauty products and homewares. It was bought by South African retailer Woolworths Holdings in 2014, then its operating business was sold to private equity firm Anchorage Capital Partners in 2023.
The chain has stores in Australia and New Zealand, including locations inside Westfield shopping centres. Some of those stores are reported to be losing money, and the company is also reviewing its arrangements with suppliers and brand partners.
A major reduction in its store network could affect staff, shopping centres, suppliers and customers. The review comes after reported pressure on the business’s cash flow and debt, while its latest accounts had not yet been signed off by auditor PwC.
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Originally published by Daily Mail as “David Jones to shut dozens of loss-making stores across Australia – as expert warns it has been in trouble for ‘some time’”.