David Jones market research brief
Introduction of the commissioning organisation
David Jones Limited is an Australian iconic department store. It is a high-end upmarket department store chain, the locals proud. It was founded in 1838 in Sydney, and currently has 38 stores trading (Wikipedia, 2014).
Department stores have struggled due to weak retail environment and low consumer confidence. (Ibis world, 2014). In 2013, David Jones launched its own call centre, a production studio and IT system focused on online shopping website. (David Jones, 2014) However, despite the ongoing investment of increasing value of the brand, in FY 2010-2013, David Jones suffered continuous plunge in sales and profit, annual gross profit dropped 50 Million (figure 1). On July 17th, Woolworths Limited had successfully taken over the Australian historical company David Jones (ASX media release, 2014)
David Jones are currently under a transformation, including new ownership, re-structuring, new investment, new brands and product, and much more. This $5billion investment will mark a historical change in the retail chain. The goals and determined spirit have increased consumers’ confidence in David Jones. The risks and challenges remains with the uncertainty of consumers expectation and possible reactions to the new business strategy.
(Source: http://www.davidjones.com.au/For-Investors/Financial-Statistics-and-Share-information)
Background of any factors that prompt the need for research
New CEO Ian Moir is optimistic about the take-over, aiming to turn David Jones annual profit to 130m within 5 years. (Korporaal, 2014)
‘Retail shopping is not dead. Bad retail shopping is’ says Ian Moir. His plan for David Jones involves several key strategies including
1. Increase frontline specialists in al stores to increase customer shopping experience, hence increase foot traffic, conversion and customer engagement.
2. Introducing new brand including lifting ‘company owned’ brand. Woolworths limited
David Jones Limited is an Australian iconic department store. It is a high-end upmarket department store chain, the locals proud. It was founded in 1838 in Sydney, and currently has 38 stores trading (Wikipedia, 2014).
Department stores have struggled due to weak retail environment and low consumer confidence. (Ibis world, 2014). In 2013, David Jones launched its own call centre, a production studio and IT system focused on online shopping website. (David Jones, 2014) However, despite the ongoing investment of increasing value of the brand, in FY 2010-2013, David Jones suffered continuous plunge in sales and profit, annual gross profit dropped 50 Million (figure 1). On July 17th, Woolworths Limited had successfully taken over the Australian historical company David Jones (ASX media release, 2014)
David Jones are currently under a transformation, including new ownership, re-structuring, new investment, new brands and product, and much more. This $5billion investment will mark a historical change in the retail chain. The goals and determined spirit have increased consumers’ confidence in David Jones. The risks and challenges remains with the uncertainty of consumers expectation and possible reactions to the new business strategy.
(Source: http://www.davidjones.com.au/For-Investors/Financial-Statistics-and-Share-information)
Background of any factors that prompt the need for research
New CEO Ian Moir is optimistic about the take-over, aiming to turn David Jones annual profit to 130m within 5 years. (Korporaal, 2014)
‘Retail shopping is not dead. Bad retail shopping is’ says Ian Moir. His plan for David Jones involves several key strategies including
1. Increase frontline specialists in al stores to increase customer shopping experience, hence increase foot traffic, conversion and customer engagement.
2. Introducing new brand including lifting ‘company owned’ brand. Woolworths limited