David Jones takes on Coles and Woolworths in $90 billion grocery grab

THE supermarket wars just heated up a notch, with a major player set to give Coles and Woolworths a run for their money. And we’re not talking about Aldi.

DAVID Jones is set to “revolutionise” food shopping in Australia, going head-to-head with Woolworths and Coles in a grab for the nation’s $90 billion grocery sector.

Ian Moir, the boss of South African retail giant Woolworths Holdings which bought the iconic Aussie retailer for $2.2 billion in 2014, is planning to offer fresh quality produce and prepared meals that was currently missing from the supermarket landscape.

Ian Moir with Jessica Gomes and Jesinta Campbell.

“There is a gap in the market, it’s not being provided by Woolworths or Coles and we can fill that gap,’’ Mr Moir told The Australian.

“The (David Jones) brand can carry that so the extension into foods is a natural one for David Jones.

“It needs to be revolutionary, it needs to be a significant improvement in the offer, so freshness needs to be better, there needs to be a greater prepared offer, it needs to look like and feel like Woolworths (South Africa) but an Australian Woolworths (South Africa) with Australian product and Australian focus.

Food revolution... David Jones’ food hall at Market Street “If we can get that right this can be a big business, it’s going to take time, it’s going to take capital investment and it will not reach its potential in my lifetime as CEO, and maybe not even John’s because this could be a big bus that we really need to build and build well over time.”

DJs push into groceries will be led by ex-Marks & Spencer executive John Dixon

The push into groceries would be led by David Jones’ new boss, John Dixon, a former senior executive at iconic British retail chain Marks and Spencer, who is credited with engineering and leading the turnaround of its food operations. It would leverage of the strength of the 178-year old David Jones brand.

Up-market food stores have had a poor run in Australia, with Australian Woolworths’ $20 million chain Thomas Dux dying a slow death, as it closes down stores and shrinks its business after failing to generate a winning strategy.

Originally published as David Jones takes on Coles and Woolworths in $90 billion grocery grab