Discuss how David Jones effectively build relationships with customers.
OPENING CASE STUDY IS DAVID JONES ON THE THRESHOLD OF SUCCESS? David Jones (DJs) is a leading speciality retailer in " DJ's core market of luxury shoppers will be well served competition in Australia with Myers. Both are well by these initiatives. Better service and more attractive shops established in major cities and both have good stables of branded clothing to sell to a wide range of clients. With will be sure to appeal. At the same time, Myers is trying to revive its stores with better layouts and staff - the race is on. rising incomes, the demographics are looking good for More change came to DJs in late 2015, Ian Nairn was both companies, so long as they can capture customers. replaced as CEO by John Dixon, a veteran of British "DJs was taken over in late 2014 by South Africa's retailer Marks & Spencer. DJs suggested that Nairn's Woolworths (a different firm to the Australian company move was for personal reasons but rumours spread that with the same name). The price was A$2.1 billion, and the it was because of tensions with Ian Moir, the head of South Africans also obtained the clothing brand Country Woolworths. The issue was said to be the pace of change, Road at about the same time. specifically getting more private labels in the store, such The differentiation strategy that DJs has always as Studio W, JT One, RE and Distraction. Moir wanted followed has since been fine-tuned. The market for quicker implementation of this strategy and Nairn such speciality department stores is growing at 7 per wanted a slower transition. Nairn also favoured the more cent per year compared with 2 per cent per year for traditional premium-brand strategy. standard department stores. The CEO at the time of the On his appointment, Dixon said that the DJs food ikeover, lain Nairn, claimed change was necessary to business was a 'little tired', and since his main job at take advantage of this huge potential market because Marks & Spencer concerned food he knew how to revive s had 'lost its way'. The firm is now focusing more on it. Mr Moir also has strong views on this. He wants a more Asian customers, putting greater emphasis on its credit exciting scene for the 'food halls' in order to make them a curds (and using them to gather more data), providing favourite destination for shoppers, and more excitement fferent incentive systems to staff and becoming far in the food areas with varied scents and bustling people. inpre sales oriented generally. As well, its stores are being Dixon also said that DJs 'ticks all the boxes' and lies upgraded, with up to A$400 million being devoted to 'at the heart of Australian society'. It remains to be seen Country Road, meanwhile, will be rolled out to if he can lead DJs to greater success in this competitive More Dis stores and have far more prominence in these segment in department stores. The market is expanding. gas will Witchery and Mimco. Country Road will Can DJs take advantage of it? iset more of its own stores, with eight more planned. In 12is generally, more private brands are being sold Sources: 5. Evans, 2015, Can DJs hack the new labels push?, The Age, 3-4 Because the profit margins for them are better than those October; P. Totaro & G. Korporaal, 2015, New DJ's boss has a taste for food; The Australian, 2 October; E. Greenblat, 2015, New strategy for David Jones, of pure brands, The Australian, 25 May
