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David Jones has opened its first international store. Jessica Power tracks the inception and progress.
There’s soon to be a ghost lingering in the heart of Sydney’s CBD.
The ghost is the home base of iconic Australian retailer David Jones, which is leaving to set up headquarters in Melbourne, marking the end of a 178 year history in Sydney.
But as the saying goes. when one door closes, another opens.
For the first time in nearly 200 years of operation, David Jones has opened its first international store in New Zealand’s capital, Wellington.
Behind these doors is a story of opportunity and growth for the brand.
David Jones COO David Thomas explains that setting up shop in New Zealand has been a case of passing the baton from one icon to another.
“New Zealand is a natural market for us to expand to and has been of interest for some time – it shares many similarities in culture, seasons and consumer behaviour to Australia.
“It was therefore fortuitous when Kirkcaldie & Stains approached us.”
Kirkcaldie & Stains established itself as a mid-size department store in New Zealand in 1863 and as a result of financial difficulties sought out David Jones last year to take over the lease of its site for a cost of $400,000.
The aim was also to retain its staff count of around 270 Wellington locals.
Although as Thomas explains, expansion to the region has been of interest to its South African parent company Woolworths Holding Limited (WHL).
“We were particularly interested in this market following the success of Country Road Group in New Zealand which is part of our family under our parent company WHL.”
Following its foray into New Zealand, WHL recorded a 13.4% increase in sales for the Country Road Group across Australian and New Zealand as of January this year.
Thomas reveals that it took just over one year and $20 million to launch its first international site in New Zealand's capital, focussing on delivering a store that presents a shiny new David Jones, even by Australian standards.
“During that time we undertook an extensive refurbishment, fully modernising the interior with same bold and contemporary design ethos recently featured at our new Pacific Fair store on the Gold Coast.
“More than AUD$20 million was invested in the internal upgrade.
“The result is a premium retail experience on par with the best in the world.”
So what can New Zealanders expect from the retailer’s debut and how has the business responded to demands in a consumer-driven environment?
“Services are a key part of the David Jones offering which aims to deliver a contemporary and engaging in-store experience along with the best of local and international products and exemplary service,” Thomas says.
“Our Wellington store offers customers a range of services ranging from personal shopping to beauty to gift registry.
“There is also a premium café within the store, our second full-service cafe offering serving breakfast and lunch.”
Dining seems a critical component to David Jones' proposition moving forward as back in Australia, the retailer has inked a deal with chef Neil Perry to spearhead the rejuvenation of its food offering.
Thomas says the experience is as much a part of David Jones' vision as its fashion focus.
“David Jones Café offers customers a genuine culinary experience in store in a relaxed, comfortable environment with great food and great service, providing customers with an additional way to have a David Jones brand experience.”
Thomas also reveals that selecting the right mix of brands, store fixtures and services in Wellington has been derived using data from its customers.
“New Zealand shares many similarities to Australia including seasons, culture and consumer behaviour.
“However we approach every store as unique and, using data and other insights, create a bespoke offer to suit both local and visiting customers.
“Our approach to Wellington has been the same and we’ve curated a fantastic variety of brands and products for the New Zealand customer.”
Stemming from this, David Jones has identified two critical demands among its customers in Wellington. The first is a greater offering of international designers and the second, paying homage to its homegrown talent.
“We have curated a bespoke product assortment for our Wellington store, collating a unique offering in the market that is already proving popular New Zealand customers.
“Our brand mix for Wellington incorporates many of the popular brands Wellingtonians know and love, but with a fresh take on breadth of range and format instore, combined with a variety of international brands that are new to Wellington or New Zealand such as Valentino, Balenciaga, Alexander McQueen, Camilla, Camilla and Marc, Ginger and Smart, Saba, Anthony Squires, Benefit, Tom Ford and Aesop.
“We’ve also expanded our stable of New Zealand designers in the Wellington store.”
The expansion of its New Zealand labels includes Wellington local Twenty-Seven Names as well as global trailblazers Karen Walker, Kate Sylvester and Saben, marking their debut into David Jones.
Other New Zealand labels joining the bill include knitwear label Sabatini and Trelise Cooper, both of which are already stocked in the retailer's Australian arm.
As David Jones beefs up its portfolio of local designers in the region, the question has to be asked - is this a way of gauging further expansion across the water?
“At the moment our focus is on Wellington,” Thomas says.
With that, the department store takes the baton from Kirkcaldie & Stains and runs its first ever international race.