David Jones scores solid Webstore result in latest financials

Aussie retailer flags increase in online sales and new payment capabilities for its customer loyalty club members, even as executive woes continue

David Jones has highlighted solid online and store sales growth in its latest financial results and announced new Webstore payment capabilities for its loyalty customers.

The positive news comes during an otherwise tumultuous time for the retailer operationally, which has included share-trading controversy, the departure of its board leaders, the resignation of its CEO and news of a failed merger with Myer.

The ASX-listed Australian retail giant reported total sales revenue for the first half of its financial year of $1.04 billion, up 3.6 per cent year-on-year, while like-for-like sales were worth $1.01bn and up 1.1 per cent over the same period.

The growth was thanks to a strong second quarter, the company stated. David Jones reported total sales $618.1 million in Q2, a jump of 4.7 per cent year-on-year. Like-for-like total sales revenue for Q2 reached $602.2 million, and was also 2 per cent higher on the same quarter last year.

David Jones’ new webstore, which was cycled for the first time in Q2, delivered 150 per cent online sales growth. The company attributed this rise to increased functionality across the site including click and collect and online gift registry capabilities.

It also pointed out the webstore operated robustly and uninterrupted throughout the higher traffic Christmas and clearance periods.

The webstore, which launched in November 2012, represents a significant investment by David Jones into its omni-channel strategy. Last August, the group added several features including click and collect, drop ship capability from suppliers, gift registry, shoppable videos, customer ratings and recommendations, and product zoom.

Two days ago, the company launched its new ‘Shop with Points’ program giving customers with David Jones-branded American Express cards and who belong to its members rewards club the ability to pay online with their points. Customers have the option of paying with points in full or using a ‘points plus pay’ option on any merchandise online.

In its annual financial statement to 27 July 2013, David Jones reported 390,000 active American Express card users, a 4.2 per cent rise year-on-year.

The steady online and customer loyalty growth comes at an otherwise tumultuous time for the retailer. Just days ago, David Jones announced a shake-up of its board, including the resignation of chairman, Peter Mason, as well as non-executive directors Steve Vamos and Leigh Clapham.

The move was widely regarded as bowing to pressure from disgruntled shareholders following an unsuccessful merger bid from Myer and controversy surrounding allegedly inappropriate share trading. Vamos has resigned immediately; Mason and Clapham are expected to stay on for three months.

David Jones also confirmed Jane Harvey as deputy chairman, who will now oversee the appointment of three new non-executive directors.

In October, David Jones CEO, Paul Zahra, also announced his intention to leave the retailer once a successor was found.

And in January, David Jones merged its customer innovations team with marketing and financial services under existing group executive of customer innovation and growth, David Robinson. The news came following the departure of marketing and financial services chief, Sacha Laing, after 18 months.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

5 cornerstones of a strong digital culture

Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.

Anthony Stevens

Founder and CEO, Digital Asset Ventures

Should you rebuild your company’s tech stack in blockchain?

The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.

Michelle O'Keeffe

CEO, Engaging.io

Customer value proposition: Getting the brand promise to your customers right

Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.

Ric Navarro

Global director of marketing and communications, Norman, Disney & Young

We supply petroleum product such as JP54, D2, D6, JET A1, Serious buyer should contact now for SCO in order to work with seller workable ...

Vico Peißker

ACCC releases Consumer Data Right draft framework for comment

Read more

What is your opinion about chatbots serving your customers? My belief is bots are going to be the future of customer service and fulfilme...

Giridhar Prathap Reddy

NAB taps power of AI chatbots for business customer service

Read more

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018

Read more

Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...

Julia Summer

Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices

Read more

RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...

Ed Fry

Why sales and marketing alignment is more important than ever

Read more

Latest Podcast

More podcasts

Sign in