The shrinking retail scene !

A whisper that retail behemoth David Jones has called for a valuation of it's retail stores has set tongues wagging in the money market.   There is a rumour circulating that the big end of town is seriously considering selling these valuable properties and reconfiguring its retail aspirations by morphing into an on-line department store.

David Jones denies the rumour, but it is a fact of life that retail sales have slumped as more and more customers go for the cheaper prices available on-line, and last years profit for the group fell from $ 168 million to just $ 101 million on a decreased turnover.   Directors of any business would be negligent if they didn't consider all the options.

Big department store chains worldwide are doing it tough.  David Jones stores are valued at $ 612 million and the bean counters must be salivating at the opportunities offering if the sale wiped out all debt and opened the door for wonderful new ventures.

This David Jones navel gazing comes at an awkward time for the business community of Wollongong.   David Jones and Myer are the lynch pins of this city's retail hub.  They are both located almost side by side in the CBD and a massive building programme is in progress to virtually double the shopping precinct that is the Wollongong Mall.  Almost an entire city block has been demolished and next year a glittering array of  shops will be looking for owners to breathe new life into this city.

Even a remote chance that one of our massive department stores may go on the market as a redevelopment site would send a chill through the business community.   That would hardly be a vote of confidence on the sustainability of brick and mortar stores, and that must shade the decisions of those thinking that an expanded shopping centre brings " opportunity " !

Obviously, the anchor tenants will have been long signed up but it is the mix of speciality stores that gives a shopping centre it's vibrant hum.   Wollongong residents may remember an unfortunate arcade development in the lower part of the city that failed to attract those wishing to start a business.  This resulted in a decade of empty shops displaying the merchandise of other stores to give the impression of prosperity.  Hopefully, a similar fate does not await this fast finishing  Mall expansion !