Battle of the Brands for David Jones and Myer

Natasha Sholl By Natasha Sholl | 28 Aug 2018

It’s been a rollercoaster ride for the department store rivals, with news that several brands will be moved from the shelves of Myer, exclusively to David Jones.

In a bid to differentiate its range, Country Road, Mimco and Politix will be sold at David Jones and pulled from rival department store Myer within the next 12 months. The brands are currently sold in 53 Myer stores as well as 45 David Jones stores (on top of over 600 stand-alone stores).

Woolworths Holdings acquired David Jones in 2014 and took full control of The Country Road Group in that same year. It acquired Politix in 2016. Until now, it has continued to sell company-owned brands out of its department store competitor, Myer.

It is unknown exactly what the removal of the brands will cost Woolworths Holdings, or exactly what the loss of the brands will mean for Myer.

This follows the news that David Jones has secured exclusive partnerships with Kenzo, Nautica and Scotch & Soda which are also currently being sold at Myer. As a result, Myer is now in active discussions with suppliers to increase its range but hasn’t made any announcements in relation to the impact of the loss, which brands may come on board or whether any deals have been made.

David Jones’ latest results show a 58.3 per cent drop in department store operating profit to $45 million, compared with $108 million at the end of the last financial year. The strategy moving forward is all about brand equity and exclusivity and the this brand shuffling will be sure to impact both department stores in the long-term as well as the short-term.

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