David Jones, Myer Suffer Sales Slump

Major Australia's retailers such as David Jones and Myer continued to suffer from the weak consumer confidence. David Jones reported on Thursday a 2.9 per cent dip in sales to $399.8 million for the three months to April 28. Myer last week registered a 2.1 per cent decline in third quarter like-for-like sales.

David Jones Chief Executive Paul Zahra said the slump in sales continues into the first few weeks of its fourth quarter. To make up for its weak performance, Mr Zahra said the high-end retailer would make changes to boost its mid-year sale such as daily deals and contests, and at the same time cut promotions for the mid-year sale to stand out to consumers.

He disclosed that for the third quarter, David Jones's best sellers were women's wear, accessories, beauty and men's wear, while home and electrical product sales were slow.

Despite the retailer's losses, Mr Zahra doused speculations that the company has received offers for takeover. Retail analysts view David Jones's good store locations and weak shares are magnets for private equity buyers.

The two David Jones outlets in Bourke St Mall and one in central Sydney have an estimated value of $750 million, while the company's market capitalisation is $1.17 billion.

Myer, to improve its bottom line amid the weak retail environment, said it would improve its online presence through its new omni-channel strategy. The strategy involves the use of distribution centres, links with suppliers, exclusive brands and the convenience of buying the item online, having it delivered at home and dropping it at the store if the item does not fit, according to Myer Chief Executive Bernie Brookes.

"There is the trust of the brand, you can try it on the fitting room, take it home and if you don't like it bring it back and you don't have to worry about all the issues with postage, delivery and the stability of the website," Smart Company quoted Mr Brookes.

The two retailers, which make less than 1 per cent of the earnings from online sales, are attempting to catch up with their counterparts overseas such as Macy's, Marks and Spencer, and John Lewis, by boosting their online presence.