David Johns and Myers

David Jones is known as one of the biggest players in the retailing industry in Australia and it is divided into two strategic groups: Department Store and Financial Service. Alacra Store (2011) states that “the principal activities of the company was department store retailing and a financial services alliance with American Express Australia Limited (American Express)”. Moreover, Alacra Store (2011) reports that three different segments compose the department stores: the head office, its department stores, the rack stores. In addition, financial services coprises of a partnership of the Company with American Express.

Myer is known as DJs direct competitor, the company had Dawn Robertson as CEO in 2004, in charged of adopting a more efficient strategy, and indeed she attacked DJs by announcing exclusive deals with brands, even the ones that had long time partnerships with DJs, like Country Road. Moreover in 2008 the company had Bernie Brooks (who is currently in charge) as its CEO and nowadays it has over sixty branches, and according to the case study, in March 2010, its shares were listed at 3.55 on the ASX.

Target is another competitor, aiming the mid-market by delivering quality products to its consumers, and relying on over 280 stores in Australia. Big W and Kmart as well as Target, compete with DJs. Big W relies on more than 150 stores, appealing to budget conscious customers. Kmart is ruled by the Coles group and relies on its old and new stores being build in strategic places across Australia.

Question 3

Yes, David Jones strategy seams to target a very specific market: Women of three generations with income higher than $75000 per year. Myer, the direct rival of DJs, abandoned its different strategies and adopted the strategy of firming exclusive deals with companies like Cue and J-lo or even others that had been with David Jones for decades, such as Country Road, and even the strategy did