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

Why defining brand strategy is vital to capitalising on quick wins

Big brands were once protected from small brands by high barriers to entry. Big brands had the resources to employ big agencies, to crack big ideas and to invest in big campaigns. They had the luxury of time to debate strategies and work on long-term innovation pipelines. Retailers used to partner with big brands.

Troy McKinnna

Co-founder, Agents of Spring, Calm & Stormy

3 ways to leverage the talents of your team to avoid disruption

​According to the World Economic Forum in its most recent The Future of Jobs report, the most important skills for the future are not technical, task-oriented skills, but higher-order skills such as creativity, social influence, active learning, and analytical thinking.

Gihan Perera

Futurist, leadership consultant

CMOs, it’s time to stop squandering customer attention

Businesses continue to highly value the attention they buy through paid media, yet at the same time, many continue to disregard and under-value opportunities to connect with customers using their owned media.

Well written Vanessa!! Agreed with your view that human experience is marketing's next frontier. Those businesses who are focused on the ...

Clyde Griffith

Forget customer experience, human experience is marketing's next frontier

Read more

Great tips for tops skills need to develop and stay competitive

Nick

The top skills needed to stay competitive in a rapidly changing workforce

Read more

The popularity of loyalty programs is diminishing, though I'd say it is because customers are savvy enough to recognise when a loyalty pr...

Heather

It’s time for marketers to rethink their approach to ‘loyalty’

Read more

Thanks Nadia for sharing this blog. It has really useful and amazing information about Salesforce Commerce Cloud and digital engagement w...

Holly Smith

Adidas taps data and technology smarts to build personalised digital engagement with consumers

Read more

clearly someone who's jealous and only comments from the safety of being behind their keyboard

Peter Sibson

The purpose of purpose - Brand science - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in