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2072 Inside Retail Weekly

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Reading between the lines on Myer's, DJs' results BY JARED DICKSON I N S I D E T H I S I S S U E : It is tempting to sum up a first quarter resurgence in department store sales with the tagline: I see it, but I don't believe it. A rollicking David Jones posted a 12.2 per cent increase in sales for the quarter, while Myer managed to achieve a 3.9 per cent lift in first quarter sales, around double its best growth rate in several years. In like for like sales, David Jones' first quarter revenues jumped an extraordinary 10.4 per cent, while comparable sales growth for Myer was 3.9 per cent. Companies can fudge earnings with some clever bookkeeping, all quite legitimately within accounting standards and corporate regulation, but fiddling with sales figures, especially like for like sales, is not as easy. The main instrument used by some retailers to boost revenues in a tough period is to tap suppliers for marketing and promotional funds, sometimes bringing forward contributions. David Jones and Myer may well have benefited from deals on the realignment of brands and merchandise ranges, and both would have been bolstered by significant clearance activity and perhaps a more confident consumer, but the sales increases for both department stores are above expectations. David Jones' results are particularly impressive with first quarter of the new financial year sales jumping to 10.4 per cent on full year 2015 financial year revenues of a tidy 6.4 per cent, and with like for like growth of 3.7 per cent, the highest growth since 2007, when the retailer posted an 8.9 per cent lift in turnover. With sales up just two per cent in the first half of FY15, David Jones would have increased sales in the June half-year by more than 10 per cent, and has now maintained that level of growth into the new financial year. David Jones' sales were boosted by new store contributions, but the initial returns from continued on p.6. RRP $14.95 INSIDE RETAIL WEEKLY FEATURE: Striving for sustainability Kathmandu pushes the envelope on sustainable store design. p16 OPINION: Retail trade associations Are associations losing their relevance? p24 NEWS: Cotton On's global embrace Cotton On joins global shopping discount events. p02 NEWS: E-commerce marketing trends Bronto CEO calls for smarter e-commerce marketing. p05 FROM THE SOURCE: Meet Lincraft's joint managing director, Brian Swersky. p12 FEATURE: Evolution in denim AG's transition from jeans to a full lifestyle brand. p20 Inside news and views on the world of retail since 1972 Nov 25 2015 F O R M O R E R E T A I L N E W S , V I S I T W W W . I N S I D E R E T A I L . C O M . A U I S S U E 2 0 7 2

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