The department store synonymous with luxury appears to be struggling and, according to reports, may be closing for good amid growing pressure from financial rivals
A major department store that has been synonymous with luxury for nearly 200 years is teetering on the brink after a string of financial headaches and bad headlines, sparking fears the iconic retailer could shut its doors for good.
David Jones, which has long been a one-stop luxury shop for retail enthusiasts Down Under, has posted major financial losses while amid growing pressure from its online retail rivals.
The luxury department store failed to lodge its latest financial accounts, but posted a staggering $74 million AUD loss for the 2024 financial year.
But, despite being fixture of Australia ’s retail landscape for 188 years, making it older than Australia itself as a federated nation (which happened only 125 years ago), it seems ‘DJ’s’, as it is affectionately called down South, is circling the drain.
Retail expert Barry Urquhart warned 7News that the situation is reaching a critical tipping point, saying the business is “very much on the precipice”, as reported by Sky News.
“Closure and disposal are very real possibilities,” he said, as concerns grow over the future of the once-dominant brand.
Mr Urquhart said shifting consumer behaviours, driven by the rising cost of living, has been a major contributor to the department store’s decline.
Shoppers tightening their belts amid the cost of living crisis have been blamed for the retailer’s sharp downturn, with customers increasingly ditching department stores in favour of cheaper online options.
“Consumers have moved from being smart shoppers to extreme discount shoppers,” Mr Urquhart added.
Cracks have already begun to show, with two stores in New South Wales shut earlier this year after three decades in operation. The move was as part of a shake-up led by new owner Anchorage Capital Partners, which acquired the business in March 2023.
Reports from the Australian Financial Review (AFR) also claim the retailer has delayed payments to major suppliers including Rabanne, Jean Paul Gaultier and Christian Louboutin.
However, a spokesperson for David Jones has refuted the claims, insisting the changes were part of updated payment arrangements as the company looks to modernise its operations.
“All concession partner payments are up-to-date, and there are no delays,” they said.
The company has also reportedly cut head office roles and downsized several stores, including locations in Sydney’s Bondi Junction and Burwood, and the well as Southland store in Melbourne.
The iconic Aussie department store even replaced its famous Christmas window display tradition last year with a celebration of its new loyalty program and associated mascot, Domino the Dalmatian, infuriating shoppers last festive season.
Despite the cost-cutting methods, David Jones is continuing to invest in its business, following a $250 million (£132.3 million) investment from owner Anchorage Capital Partners, according to AFR.
“We are 100 per cent behind David Jones,” an Anchorage spokesperson said, before adding: “Our suppliers have been outstanding as we transform this iconic Australian brand.”
“Alongside our financial partners, we are well-placed to continue investing in the business and managing its day-to-day processes.”
The grim outlook comes as Australia’s retail sector faces widespread upheaval, with Accent Group planning to shutter all Glue Stores by the end of the 2026 financial year, while Jeanswest is set to close all 90 of its bricks-and-mortar stores after entering voluntary administration.
