David Jones taking action with Australian store closure plans as sales plummet

A sad ending for one of Australia's biggest retailers.

Fashion retailer David Jones is working on store closure plans after COVID-19 impacted its profits.

Despite being one of the country's most iconic department stores, sales dropped by more than one-third within an eight week period leading to the end of April.

According to 9News, Woolworths Holdings Limited revealed that "COVID-19 has had a significant impact on (customer) foot traffic and store sales" in recent weeks.

Although the retailer has seen an increase in online sales, the company confirmed in-store purchases dropped by a staggering 35.8 per cent.

The company is currently in discussions with landlords, figuring out the best plan for physical floor space reductions in stores - so shoppers can expect a change to their physical shopping experience.

"We expect the challenging and fluid operating environment brought about by the pandemic, to continue for the foreseeable future," the company told the news site.

"In these unprecedented times, the Board and management team will continue to act swiftly and decisively to protect the Group's financial position."

One of David Jones' most recent store openings took place in 2016.

It is not yet known which stores will close, however the company expects to make some massive changes to the stores around the nation.

Similarly, more than a hundred Target Australia stores are set to be closing. As previously reported on LifeStyle, parent company Wesfarmers announced on May 22 that 75 Target stores would close and 92 others would be transformed into Kmart stores.

They revealed that ten to 25 large Target stores will be closed, alongside 50 smaller Target Country stores.
They also said that 25 regional Target Country stores will be converted into smaller Kmarts, while between ten and 40 large stores will become larger Kmart stores.

After undergoing a financial review, the company confirmed it had plans to restructure as the Target suffered a $67 million sales dip.

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