The deal isn’t even sealed, but David Jones’ likely new owner is already eyeing up expansion.In an interview this week, Ian Moir, CEO of Woolworths, the South African retail giant set to takeover David Jones, said smaller, village style stores would be part of future expansion plans.
Moir revealed he already has three “obvious” locations in mind although did not identify them, but cited DJ’s Malvern village store, which, at 7,500 sqm is much smaller than its normal department store format.
Opened in September last year, the suburban store reflects DJ’s “Next Generation Store” concepts including charging stations, complimentary Wi-Fi, interactive tweet mirror, instore areas to purchase online and collect web purchases.
Moir hopes to open up a bunch of new stores rising to “double digits” if the proposed $2.15 billion takeover is successful.
”I think we see three obvious [sites] within the next couple of years,” he told Fairfax Media.’I believe we can get to double digits in time – but it’s going to take time.”
What we will not do as a business is make bad real estate decisions. So you need to make sure you have got the right demographic and the right position within that demographic.”
He also said Woolworths shareholders were in “shock” over the size of the takeover deal, announced last week, worth $2.15 bn, or $4 cash per share.
On Friday DJ’s chairman Gordon Cairns, wrote a letter to shareholders’ recommending the $4 a share buyout, 25% above the retailer’s current share price, branding it a “compelling deal” and superior to the alternatives, including a merger with Myer and standalone value creation opportunities.
Both DJs and Woolworths shareholders will vote on the takeover proposal in June.
