Part A-1: David Jones Strategic Analysis – SWOT
STRENGTHS
• Brand Name, Product and Brand Portfolio
DJS was the first department store in Australia and its black-on-white hounds tooth was judged one of the Australia’s top ten favourite trademarks in 20061. DJS maintains a wide variety of products and brands ranging from fashion to electrical goods with a portfolio of over 1000 brands covering international and local labels as well as its own internal DJS and DJS Plus brand names.
• Services Portfolio
David Jones offers both in store and financial services to cater for customers. In store services include personal shopping, style advisors, beauty and free health screening services. Financial services provided include David Jones Platinum AMEX, Qantas Frequent Flyers points and the DJS Store card. Corporate services provided include DJ gift cards.
• Store Portfolio
Operates 35 stores and two warehouse outlets in metropolitan locations nationally. The four premium Sydney and Melbourne CBD retail properties are owned outright with 85,000 sqm of retail space plus existing leased properties and the opening of new village format stores in areas with appropriate demographics with no major shopping centre.
• Capability for Fund Raising
Even with challenging retail conditions, DJS’ balance sheet exhibits strong fundamentals exhibited by solid cash flows, low debt to equity and debt to asset ratios in FY11 and FY12.
WEAKNESSES
• High Brand Switching – Low Brand Loyalty
DJS is primarily a mid to high-end luxury brand. With the