Melbourne the perfect fit for David Jones
DAVID Jones chairman Ian Moir says Melbourne’s status as the nation’s fashion capital and deep retail talent pool make it a “no brainer” to house its new corporate headquarters.
Business
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DAVID Jones chairman Ian Moir says Melbourne’s status as the nation’s fashion capital and deep retail talent pool make it a “no brainer” to house its new corporate headquarters.
The upmarket department store chain, owned by South African retail heavyweight Woolworths Holdings, also expects to milk at least $10 million in savings each year by combining various local head offices into a single Melbourne space.
David Jones yesterday announced it would shift its Sydney headquarters to a new site in Richmond.
The new headquarters will house David Jones and Melbourne-based fashion group Country Road, both owned by Woolworths, which is not associated with the Australian company of the same name.
“Melbourne is the fashion capital of Australia, it is the retail hub of Australia,” Mr Moir told Business Daily.
“There is more of a talent pool here, the costs are cheaper and the reality is we already have a big business here.”
“We’ve enjoyed our time here in Melbourne.
“We have a legacy here. We know the city well. It makes sense for us.”
Woolworths plans to spend $240 million in the state over the next five years, funding the move and rolling out new David Jones stores.
The move, which a major corporate coup for Melbourne, is part of a revival strategy being rolled out by Woolworths, which shelled out $2.1 billion for David Jones two years ago.
It locks in Melbourne’s status as the fashion capital of Australia with both David Jones and Myer operating out of the state. The new Swan St headquarters will house 600 David Jones and 680 Country Road staff, the latter who currently operate out of a building on Church St.
David Jones expects to hire 220 new workers in corporate functions as it looks to increase its store count in Australia and New Zealand and expand its gourmet food offering.
Australia’s oldest department store was founded in Sydney 178 years ago. Sydney-based David Jones workers have been offered their jobs in Melbourne and relocation allowances.
Mr Moir, who also serves as Woolworths chief executive, said there was no plan to close down or shed jobs at Sydney’s Silverwater distribution centre.
The combined moves will begin late next year and are expected to be bedded down by the end of 2018. The need for a new corporate headquarters comes as David Jones rearranges its flagship stores in Sydney’s CBD.
It is selling its Market St store and carrying out a $200 million refurbishment of its Elizabeth St property, where it currently houses the bulk of its corporate staff.
Four floors devoted to corporate functions will be transformed into retail space. Mr Moir said it made sense to bring David Jones and Country Road staff into one shared centre in Melbourne to drive the next phase of their development in Australia.
“We wanted to have the best environment for both of those businesses,” he said.
Woolworths, which has no connection to the supermarket chain, also owns the Witchery, Trenery and Mimco brands.
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