Up martket department store David Jones who are currently expanding their consumer technology offerings is set to boost annual sales by 10% with the opening of three new stores by 2012.
Up martket department store David Jones who are currently expanding their consumer technology offerings is set to boost annual sales by 10% with the opening of three new stores by 2012.
The bullish predictions comes as many retailers are witnessing downturns in trading due to the current economic climate. The new stores will be at Pacific Fair in Qld (expected to open in late 2011, Macquarie in NSW (expected to open mid-2011) and Whitford in WA (expected to open in early 2012).
David Jones say in an ASX announcement that the new stores will add about A$200 million to revenue and increase earnings before interest and tax by $26 million. The retailer has also announced that they have entered into what it calls “a multi-faceted property agreement with a number of landlords”s including Westfield, AMP Managed Funds, Dexus and APPF.
David Jones says that each of these stores are in high-value locations and according to the statement from David Jones CEO, Mark McInnes, the “property agreement is a milestone achievement for our company”.
McInnes also said that he is seeking to expand his network to 44 outlets by opening stores in wealthier suburbs, refurbishing older outlets and signing new 25-year leases with landlords including Westfield Group and Dexus Porperty Group. Each new outlet will meet the company’s target of at least A$40 million in annual sales and A$5 million of earnings while capital spending remains within its A$50 million annual budget.
“All of these initiatives will deliver significant value,” McInnes said in the statement. “These financial benefits will commence flowing through to the company in fiscal 2012 and be fully realized in 2013.”
David Jones shares rose 2 cents to A$2.54 at 10:08 a.m. in Sydney, paring this year’s decline to 54 percent.
