Myer and David Jones, two of Australia’s most iconic department stores, are grappling with the challenge of attracting younger customers in a rapidly evolving retail landscape. As they face declining foot traffic and the rise of online shopping, both companies are seeking innovative strategies to remain relevant.
The journey of these department stores is deeply intertwined with the cultural fabric of Australia. In the 1940s, Miranda Cole’s grandmother would leave her fur coat in the cloakroom of Myer in Melbourne while shopping. Decades later, the tradition continued as Miranda and her sisters visited the store for special occasions, creating memories that spanned generations. Such nostalgic recollections are common among Australians, highlighting the department stores’ role as more than just shopping destinations.
The Changing Retail Landscape
The decline of department stores is not unique to Australia. Globally, these retail giants have been “structurally challenged,” according to Paul Zahra, former CEO of David Jones. The challenges include the global financial crisis, the pandemic, and the online shopping revolution, which have all transformed consumer habits.
In response, Myer and David Jones have closed several stores and reduced floor space. Myer has shuttered locations in Brisbane’s CBD, Frankston, and Blacktown, while David Jones has closed stores in Mt Gravatt and Ringwood. The once-bustling food halls in David Jones’ flagship stores have also been downsized.
“Department stores have been structurally challenged around the world. They’re having to rethink their physical footprint, invest heavily in digital to remain relevant and rethink their value proposition.” — Paul Zahra, former CEO of David Jones
Revitalizing Through Innovation
Despite these challenges, both Myer and David Jones are investing in digital technology and loyalty programs to attract younger customers. Myer has acquired Premier Investments’ clothing division and announced the launch of the “Myer Group,” expanding its network across Australia and New Zealand. In October, Myer plans to relaunch its loyalty program, Myer One, to enhance customer engagement.
David Jones, under CEO Scott Fyfe, is focusing on “Vision 2025+,” a strategy to transform the brand into an “integrated omnichannel curator” of top brands. This includes a new mobile shopping app and the launch of David Jones Rewards, a points-based loyalty program in partnership with Qantas Frequent Flyer.
“We want to create warm connections, and we want to drive customer lifetime value, but most of all, we want to drive loyalty.” — Scott Fyfe, CEO of David Jones
The Role of Fashion and Experience
Fashion remains central to the department stores’ mission. David Jones has historically been a tastemaker in Sydney’s department store landscape, hosting parades of Dior collections and employing celebrity ambassadors like Megan Gale and Miranda Kerr. Today, the focus is on introducing fresh collections and new brands to capture the attention of high-velocity shoppers, especially young women.
Beauty is another area of potential growth. Both Myer and David Jones are looking to enhance their beauty services, inspired by successful models like Mecca’s flagship store in Melbourne, which offers a range of beauty services and experiences.
“More than 80 per cent of Gen Z prioritises real-world experiences over digital ones. Department stores need to offer the wow factor.” — Patty Huntington, fashion journalist
Looking Ahead
The future of department stores remains uncertain, but both Myer and David Jones are committed to adapting and evolving. While nostalgia and tradition play a significant role in their brand identity, the focus is on creating new experiences and leveraging technology to engage with younger customers.
As they navigate this transformation, the challenge will be to balance the legacy of their past with the demands of the future. For now, loyal customers like Miranda Cole continue to cherish their visits, keeping the spirit of these iconic stores alive.
For further insights into the evolving retail landscape, visit our page at The Sydney Morning Herald, The Age, and Brisbane Times.
