Woolworths has struggled with its David Jones business in Australia.
Apparel and food retailer Woolworths says it’s committed to turning around its embattled David Jones business, in the face of a report that it is considering getting rid of it altogether.
In a written statement, Woolworths would not be drawn into commenting on the possible sale of the ailing business, saying it does not comment on “media or market speculation”.
The group further stated that it will communicate any developments to the market when that is warranted.
“WHL [Woolworths Holdings Limited] remains focused on the operational turnaround of David Jones and ensuring that this iconic business is restored to its rightful market leadership position in Australia,” the retailers clarified.
On Monday, The Australian wrote that the South African retailer was in talks with banks to sell the department store.
Woolworths acquired David Jones in 2014 for R21.4 billion. At the time, the acquisition of the 184-year-old company, seemed like a step in the right direction for its aspiration to conquer the southern hemisphere and compete with global retailers. But over the years, David Jones has proven to be a thorn on Woolworths side, resulting in write-downs and losses for the group.
Woolworths has since changed leadership, with former CEO Ian Moir who spearheaded the acquisition exiting and current CEO Roy Bagattini focusing on turning the business around.
But the retailer has a long way to go; its latest trading statement shows that David Jones’ turnover for the 26 weeks ended 26 December 2021 fell by 9.2%, while its sales declined by 9%.
As part of its move to turn the business around, Woolworths has been reducing the brands’ floor space, shrinking it by 5.8% in the half-year. The group also sold its Bourke Street Mens and Elizabeth Street properties in David Jones, which netted it R9 billion.
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