An iconic Australian department store (DJ’s) is doing its best Blockbuster impersonation.
They are reducing two Sydney flagship stores to 1, and eliminating 6 floors.
Profits have been declining every year for 15 years (lightening reaction times).
Online sales rose 46.8 per cent and now account for 7.7 per cent of total sales.
But they call it a “retail recession”. 15 years is not a retail recession. More like a crusty brand recession.
The wonderful DJ’s service was legendary, but the legend is built around invisible staff and awful service.
Service counts more than ever in physical stores but it’s the place they cut.
They had/have a chance to fix it if they become an iconic.com.au but they are probably cooked.
They saw their purpose as a multi-brand landlord, but they should have considered themselves to be a multi- brand marketplace.
This would have enabled them to pivot to online.
When service and purpose clash it’s like waves crashing on an outgoing tide.