Despite receiving recent good news about the rise in overall sales revenue, David Jones (DJs) has announced it will be closing its Newcastle CBD operations.
This comes after The GPT Group withdrew from its $600 million Newcastle Central development plan, which included redeveloping DJs’ Newcastle CBD store, in seek of “alternative development opportunities”.
In September 2008, David Jones and The GPT Group entered into an Agreement for Lease (AFL) for a new department store but due to the withdrawal, DJS will be exiting operations in Newcastle CBD after its lease expires on 31 January 2011.
“We are disappointed that GPT’s Newcastle CBD redevelopment is not proceeding given we have traded in the area for more than 50 years,” CEO Paul Zahra, says.
According to the DJs, its refurbished Kotara store, which is due for completion by October 2010, will service for the Hunter/Newcastle region when the Newcastle store closes. The company will also redeploy its Newcastle staff to the Kotara store.
“We are confident of migrating customers and sales from our Newcastle store following its closure, to our Kotara store and of enhancing our profit due to the lower cost base of not operating a store as old and as in need of refurbishment as our Newcastle store,” Zahra says.