David Jones and Myer are in trouble of losing their grip on the market. These 2 major retailers have been in existence – David Jones, for 175 years, and Myer for around 113. With the changes in the retail landscape, both have been victims of new cultures and traditions overpowering the old.
No one saw this coming. When the nation enjoyed a 15 year credit boom, customers were at the forefront carrying most of the burden. During this span store closures were avoided. But without innovation, the customers can only hold on for so long.
When the internet age dawned upon us, David Jones’ made an attempt to change with the times. After acquiring assets of 3 online retailers, the company had to shut down their online operations within 3 years, losing $28 million in the process. These were signs of things to come.
While the local retailers are catching up, more international retailers are setting their sights in Australia. Gap, Abercrombie and Fitch, Hollister, H&M, among others are taking strides to get a slice of the market.
The shrinking market is not only felt in the country, but in the global stage as well. Sears have announced the closure of its Chicago store and JC Penny is set to close 33. Department Stores could be a thing of the past. We are seeing the changes, and retailers should know when to raise the white flag.
Read more about this on the Sydney Morning Herald website.
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