Early signs good as David Jones reveals Sydney CBD ground floor
The champagne fountain was cascading at the unveiling of the David Jones Elizabeth Street ground-floor launch this week.
And as the grand Sydney flagship continues the slow reveal of its complete refurbishment, early signs are the $400 million investment is paying off.
Acting chief executive Ian Moir describes the ground floor as the “gateway” to the store and its opening as “transformational” of the in-store experience after two years of hoardings. Moir says that on the six floors already trading, “we’re seeing a big increase in average transactional value”.
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“We’re really happy with how it’s trading,” he says. “The store is up on last year, despite foot traffic being down 30%. When they’re in, they’re coming in to spend and they’re spending money.”
There is now more to spend that hard-earned money on, with a who’s who of luxury brand accessories and cosmetics on the ground floor.
Just weeks after French luxury house Louis Vuitton reopened its own flagship nearby on George St, its concession in David Jones is a no-expense-spared 120sqm.
Similarly, Italian powerhouse Gucci has taken over an impressive two-frontage concession, with additional jewellery counters on the open-plan floor. It has its own flagship store literally across the road with perpetual queues into the street.
There are impressive and entertaining additions to the floor by way of a sushi train-style display of handbags by Balenciaga and huge LED screens. Moir says that of the $400 million being spent on the store’s revamp — half by the retailer, half by the brands — the most has been spent on the ground floor fit-out.
“All the luxury brands, both beauty and accessories, have spent the most on that floor and we’ve spent the most on that floor. It is the most important.
“You have to spend and create the most amazing environment in the physical store. You have to have a reason for the customer to visit.”
With the all-important Christmas trading now in full swing, the timing could not be more critical for the embattled retailer, which was bought for $2.1 billion by South Africa’s Woolworths Holdings in 2014.
The 181-year-old company is now valued at $965 million following two writedowns.
This article originally appeared on www.theaustralian.com.au/property.
