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

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Hey WhatsApp chatbots need to be added to a business’ tool belt to engage with the always-on customers. Easy to build in literally 5 step...

Unnit Dedhia

How chatbot marketing brought a supernatural exhibition to digital life

Read more

We’re seeing an increase in customer loyalty after businesses began implementing Live Chat. Here’s your one-stop guide on Live Chat suppo...

Fiza Syed

Customer loyalty in the time of COVID-19

Read more

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandateWe currently have Available FOB Rotterdam/Houston for JP54,D2, D6, JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Hi This is George, Thanks for sharing this nice information about foodpanda blockchain. During this pandemic situation food delivery indu...

George David

foodpanda launches blockchain-based out-of-home advertising campaign

Read more

Did anyone proofread this document before it was published?

Beau Ushay

CMO Momentum 2020: How to embrace agile marketing

Read more

Blog Posts

Innovate or die

It’s hard to know if famed management and marketing guru, Peter Drucker, coined this phrase for dramatic effect. My belief is he was emphasising the notion that few products and markets are static and few organisations can survive without innovation.

Michael Valos

Senior Lecturer, Department of Marketing, Deakin University

Commissioning personas that get used

How to avoid the bottom drawer, and how to get value from the work you’ve paid for

Melanie Wiese

Chief strategy officer, Wunderman Thompson

Why It’s Going To Be A Bumper Holiday Season Despite the Pandemic

Behavioural science expert Dan Monheit, co-founder and strategy director of creative agency, Hardhat, writes that marketing chiefs should hold their nerve, as they have reason to be optimistic

Dan Monheit

Co-founder, Hardhat

Sign in