David Jones and Country Road Group have continued strong sales momentum for the 20 weeks to November
David Jones and Country Road Group are booking strong sales growth heading out of lockdowns as customers return to the stores.
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Department store David Jones and its stablemate fashion chains at the Country Road Group have continued to ring up strong sales growth momentum heading out of lockdowns, which should help to add some polish to the David Jones business as its owners look to sell it.
South Africa’s Woolworths Holdings, which owns David Jones and the Country Road Group, issued a trading update late on Wednesday for the 20 weeks ending November 13 which showed sales growth as lockdowns ended and a continued pivot back on shopping in physical stores following an online boom through the pandemic.
Woolworths Holdings, which bought David Jones in 2014 for just over $2.1bn as well as the remaining stake in Country Road Group, said its fashion and apparel businesses in Australia continued their positive momentum, with both David Jones and the Country Road Group
delivering sales above pre-Covid levels.
“As mentioned previously, trade in the prior period was impacted by the extended lockdowns, resulting in relatively higher growth rates in the current period compared to the prior period,” Woolworths Holdings said in its trading update on Wednesday.
The retailer said David Jones’ turnover and concession sales increased by 55.3 per cent for the period, with its flagship and CBD located stores performing well ahead of expectations. It continued to rationalise unproductive space, with trading space reducing by a further 3.7 per cent relative to the prior period.
David Jones’ online sales contributed 15.8 per cent of total sales, down 28.9 per cent on the prior period, as customers returned to shopping in stores following the end of lockdowns and travel restrictions.
The update comes as Woolworths Holdings looks to possibly exit its David Jones business. In October Woolworths Holdings confirmed it was actively exploring options for the possible sale of David Jones, telling its investors in South Africa there would be no further flow of capital from South Africa as the chain must stand on its own feet.
In a note to shareholders in the retailer’s latest annual report, Woolworths chief executive Roy Bagattini said that after years of investment, restructures and paying down debt it was time to consider David Jones’ future.
“David Jones is now debt free, self-funding, and has a clear road map to improving profitability, and as such, we are in a favourable position to explore all future options in respect of this business, and how best to further unlock value for the group and our shareholders, Mr Bagattini said at the time.
Meanwhile, for the 20 weeks to November Country Road Group – which is made up of Country Road, Witchery, Mimco, Trenery and Politix – posted sales growth of 36.2 per cent, underpinned by particularly strong performances from the Country Road, Politix and Witchery brands, following the successful launch of new ranges, which resulted in a higher proportion of full-priced sales.
Space reduced by a further 5.1 per cent during the period, while online sales contributed 25.6 per cent to total sales, down 17.9 per cent compared to the prior period.
Originally published as David Jones and Country Road Group have continued strong sales momentum for the 20 weeks to November
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