David Jones lures Myer talent as head office moves to Melbourne
DAVID Jones is raiding rivals Myer and Premier Investments to fill its new headquarters in Melbourne.
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DAVID Jones has begun to raid the ranks of rivals Myer and Premier Investments to fill its new headquarters in Melbourne.
The decision by David Jones to move its head office — and some 600 jobs — to Melbourne has cemented the city’s reputation as the Australian fashion capital and kicked off the fierce talent war within its prized fashion and retail industry.
Both of the nation’s leading department store retailers will soon call the city home.
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Premier Investments — owner of Just Jeans, Peter Alexander, Portmans, Jay Jays, Jacqui-E and Dotti — and Sussan Group, home to the Sussan, Sportsgirl and Suzanne Grae chains, are among others on the list of high-profile retailers based in the city.
David Jones stablemate Country Road Group, Kmart, Target, Pacific Brands, Aquila Shoes and Calibre are also on the list, while Cotton On Group is based in Geelong.
“Melbourne has built an extremely strong brand in this space and it seems to be getting stronger,” Deloitte Australia national retail head David White says.
“David Jones is clearly a major player in the retail space and the location of their headquarters is important.”
Owned by South African retailer Woolworths Holdings, the department store chain will move its head office from the upper levels of its flagship Sydney store to a new facility on Swan St in Richmond.
The move will combine David Jones head office staff with their counterparts at Woolworths’ other Australian retail businesses, Country Road, Trenery, Witchery, Mimco and Politix.
“It’s a very positive development and it again solidifies that position of Victoria and Melbourne as being the home of fashion,” said Kiri Delly, the deputy head of industry engagement for the School of Fashion and Textiles at RMIT University.
“The potential that brings to the sector here in Melbourne is right across the board, from design, logistics, buying and then onto the retail side as well.
“One of the reasons they have highlighted in making the move is we have the talent pool here in Melbourne, so we are chuffed to hear that.”
THE move is expected to save Woolworths, which is not related to its Australian namesake, up to $30 million a year in rent and clear three levels of floor space at the Sydney store that currently houses David Jones’ head office.
Those levels will be converted to prime retail space as part of a $175 million upgrade that David Jones says will create the best department store in the southern hemisphere.
Woolworths chief Ian Moir has been keen to stress the move is about more than just overheads and floor space.
Rather, it’s part of his “change or die” mantra for retailers and will create a “single centre of retail excellence” for the group’s Australian interests.
“We want a single operational hub,” Mr Moir told a roomful of South African analysts during Woolworths’ full-year results in August.
“Not just because it saves us a lot on overheads and costs and makes us more productive. It’s really about changing the business so we have one culture, one focus, one vision and one leadership across the group.”
That “one vision” has also made staff a new front in an increasingly competitive retail battle as David Jones begins targeting rivals.
Myer has been hard hit, losing its general manager for menswear, Chris Wilson, and its senior international and Australian designers buyer, Teneille Ferguson, as well as Elena Strohfeldt, its assistant women’s designer buyer.
Premier Investments, also based in Richmond, has not emerged unscathed, losing a planning manager from its Jay Jays brand, Kristy Platel.
Others recruited to David Jones include Elizabeth Corr, head of real estate leasing and management, from Spanish fast fashion chain Zara, and Eddie Hikaiti, who is now a buyer for the group after joining from listed Australian retailer Woolworths Limited.
David Jones staff were offered relocation packages while Melbourne mayor Robert Doyle was flown to Sydney to sell staff there on the merits of a move south.
Staff began relocating in August, with the bulk of the move to be completed in January and February next year.
The department store chain has kept under wraps how many staff have taken up the relocation offer other than to say it is pleased with the result.
That said, it has quietly kicked off what is expected to be a major local recruitment drive, advertising for more than 30 new positions including a real estate strategy analyst, food buyers, visual merchandise specialists, IT analysts and campaign specialists.
“For local talent, it’s exciting,” Ms Delly said.
“To get those products and designers out on the retail floor you need a lot of people behind the scenes.”
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