David Jones chief executive quits for ‘personal reasons’

DAVID Jones chief executive Iain Nairn is leaving the embattled retailer for “personal reasons” just 14 months into the job, despite boosting sales.

David Jones at Barangaroo

DAVID Jones chief executive Iain Nairn is bowing out of the top job at the department store after only 14 months.

Mr Jones, who has driven a spike in sales since David Jones was bought by South Africa's Woolworths Holdings in August 2014, is leaving for personal reasons.

His successor will be UK retail executive John Dixon, formerly of Marks & Spencer, the Australian Financial Review reports.

Mr Nairn will stay on as an adviser for three months before his replacement, the head of general merchandise at UK retailer Marks & Spencer, John Dixon, moves to Sydney to step in.

The AFR reports that he told senior David Jones executives on Wednesday morning that he was unwell, and that a spokeswoman for parent company Woolworths rejected rumours that Mr Nairn’s departure came after an investigation into his expense accounts.

Sales at David Jones soared 10.7 per cent in 2014/15 amid major changes, including the removal of almost 200 brands.

Before being appointed David Jones chief executive, Mr Nairn was in charge of Country Road, which is also owned by Woolworths.

"Over the past three years Iain has made a significant contribution to our Australian businesses," Woolworths chief executive Ian Moir said.

John Dixon has left Marks & Spencer in the UK and will take over as David Jones chief executive.

Mr Dixon, who has worked at Marks & Spencer for 25 years, was a world class retailer with a powerful combination of international food and fashion expertise, he said.

"John's appointment reflects our long term strategy to take the David Jones business to the next level," Mr Moir said.

Woolworths' big spending plans for David Jones include huge improvements in customer service, new stores with different formats and an overhaul of its flagship sites in Sydney and Melbourne.

Mr Dixon said it was a privilege to take on such a role with a business that lies at the heart of Australian society.