Groundwork laid for DJs food push

David Jones is shaping the supply chain for its highly anticipated push into grocery retailing.

Yarra Valley farms has joined forces with one of Woolworths Holdings’ food suppliers in South Africa.

South Africa’s Woolworths Holdings is beginning to shape its supply chain for a planned expansion by its David Jones department store into food and grocery retailing in Australia, with one of its food suppliers in South Africa joining forces with Victoria’s Yarra Valley Farms to stitch together the framework for distributing fresh produce.

South Africa’s In2Food, a leading business that provides convenient food solutions to retail customers including Woolworths Holdings supermarkets, has inked a joint venture deal with Yarra Valley Farms.

Inspired Foods, the name of In2Food’s Australian business, is developing a facility in Sydney’s Bankstown to support its plans with Woolworths Holdings.

Woolworths Holdings chief executive Ian Moir told The Australian that David Jones’ recently appointed chief executive John Dixon was laying the groundwork for its big push into grocery with plans to offer an up-market, premium food offering.

“We are building the business, we have got some of our suppliers from South Africa who have come over and they have invested in joint ventures in this marketplace, we are building a supply chain, we are employing people, we are putting a team together,’’ Mr Moir said.

Mr Moir cited In2Food’s deal with Yarra Valley Farms as an example of the type of joint ventures that were being struck to give David Jones the muscle to push into grocery and take the fight up to market leaders Coles and Woolworths.

“These South African companies have entered into JV’s with local companies.’’

In May David Jones unveiled a management restructure that saw Pieter de Wet, formerly general manager food for David Jones, appointed to the expanded role of group executive food, reporting to David Jones boss Mr Dixon.

“John Dixon has got an executive reporting to him directly on food,’’ Mr Moir said this afternoon, “and he has brought in a team of various people from Australia, the UK, South Africa that are deeply knowledgeable about quality food.

“And you don’t build a great food business overnight, but we will build a great food business and we will invest a lot of money in that food business, and in five years time we will have the most beautiful, desirable, fresh food in addition to a fine dining experience in Sydney and Melbourne.’’

David Jones’ planned push into food retailing has been highly anticipated, with the department store to offer a wide food and grocery range — as Woolworths does in its native South Africa, where it has become known as a leading retailer of premium fresh food and packaged groceries.

Mr Dixon has a proven track record in food, and before joining David Jones spent the last six years on the board of British retailing icon Marks & Spencer as executive director, initially running the food business before leading the general merchandise arm.