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DJs: Electronics Ain't in Fashion

By Oonagh Reidy | Thursday | 21/03/2013

Even Miranda Kerr can't save DJ electronics category from demise, as it adopts a "future strategic direction plan" to prop up profitability

DJ's 'report card' on its Strategic Plan released yesterday revealed much about the high end retailer's plans to get out of the sales slump its business is in - latest first half sales (H113) fell 0.7% and profits were down 13.5%.

"Our sales performance  during this period was  however adversely impacted by our Home categories, i n  particular Electronics,which continued to be challenging and subject to ongoing deflationary pressure", the retailer admitted in a statement.

DJs now aims to have a 75:25 category mix split between Fashion & Beauty (its best selling categories) and Home, to improve profitability.

Last month, it denied it was dumping TVs saying: "TVs are under review obviously, but we are not existing the category" a David Jones spokesperson told CN.

DJ was not available at the time of writing for comment.

It also sells small appliances like coffee machines, woks and toasters from the likes of Breville, Sunbeam and Delonghi. 

"Our focus is on improving the  profitability of our sales. We are exiting the low performing categories of DVDs, Music and Games," its presentation said. 

"We also continue to reduce the depth and breadth of our promotional discounting events and continue to work on changing our category mix to increase focus on higher margin [goods]."

On average 76 % of David Jones' Gross Lettable Area (GLA) across its store portfolio is"selling space" but it is now trying to up this to 85% via its New Store and Refurbishment program, and points to newly opened Highpoint (VIC) store which reflects this newly enlarged selling space target.

It is also refurbishing or has completed upgrades on seven of its stores including Sydney's Elizabeth St, Chadstone Vic and Canberra Centre, ACT.

The Plan also referred to its omni channel strategy which they said is going well, and interestingly, its best selling online products were were Small Appliances and Womenswear

Web sales rose a massive 288 % in Q2 compared to a year prior.

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