David Jones Limited (ASX: DJS) boss Paul Zahra has revealed the best sales growth in four years for the department store retailer.
Second quarter sales rose 4.7% in the three months to January 25, to $618 million, including the key Christmas sales period.
Despite Mr Zahra announcing his intention to resign last year, he says he hasn't yet resigned, leaving the door open for him to stay. That appears more and more likely given the departure of chairman Peter Mason and two non-executive directors, over the share trading and Myer Holdings (ASX: MYR) merger fiasco.
Here's 10 ways Mr Zahra can save the department store dinosaur from extinction.
- Merge with Myer Holdings.
- Add more directors with retail experience to the board.
- Focus on its exclusive brands and grow its in-store own brands.
- Take a lead from fashion competitors ASOS, H&M, TopShop, Zara and Marks & Spencer's websites with the goal of having the best fashion retail website in Australia.
- Focus on its key categories of Womenswear, Menswear, Beauty, Shoes and Accessories.
- Move to smaller stores in shopping malls – cutting rental expenses, and open more, smaller format 'village' stores in prime locations.
- Consider opening upmarket restaurants and cafes in store, like US retailer Nordstrom, as well as a deep discount outlet al a Nortstrom Rack.
- How about more makeover artists and stylists in store? I'm sure many men would appreciate help when shopping too.
- Take another lead from Nordstrom, and use social media sites such as Twitter, Facebook and Pinterest. Norstrom posts several updates each day, with a relentless focus on driving consumers to its online store.
- Hire me as a consultant for a small sum.
No, that last one was a joke.
Foolish takeaway
There are definitely several strategies David Jones, and its rival Myer, could consider in order to remain relevant and see off the structural and cyclical changes occurring in the industry, as well as the swarm of international retailers arriving on our shores.
