A former David Jones employee has described how the department store’s once-luxurious shopping experience gradually faded, with live harpists, jazz bands and private VIP shopping replaced by a much more limited offering.
Jeremy Franco, now a comedian and presenter, said the retailer had been “declining in its offering” well before it entered voluntary administration this week, driving loyal customers towards online shopping.
Franco worked for a menswear brand with concessions in six Sydney stores. He said suburban outlets had increasingly been “neglected” as David Jones concentrated on its flagship locations.
“It was a very luxe vibe; in the first year I worked there, they would still close the store every year so VIPs could shop privately,” he said.
“In my second year, that changed and anyone could take part. I remember the VIPs being upset because they wanted that private experience. You could see the offering becoming broader rather than remaining focused on high-spending shoppers.
“When I started there, harpists also performed in the store and jazz bands would play. Over the years, those things gradually disappeared. The suburban stores were being neglected in favour of the more premium experience.”
Franco also suggested that David Jones’ determination to uphold its standards may have complicated negotiations before the retailer’s collapse.
“David Jones is very particular. They have so many standards, and I really respect them for that, but they stuck rigidly to those standards. That’s why I think they’re coming undone,” he said.
Former David Jones employee Jeremy Franco, now a comedian and presenter, said the retailer’s offering had been in decline before it entered voluntary administration, pushing loyal customers towards online shopping
David Jones entered administration on the eve of the Christmas season, traditionally the busiest period of the year for the retail giant
David Jones was once recognised across Australia for its premium in-store experience
David Jones entered voluntary administration on Thursday, putting the future of the 188-year-old retailer and its 6,000 employees in doubt after it failed to pay rent to Westfield.
Dozens of stores across Australia are expected to shut before Christmas, with many located inside Westfield centres.
Although Franco looks back fondly on his time at David Jones, he said the company’s strict procedures could place unnecessary pressure on staff, even when they took a brief coffee break.
“There were heaps of little rules. For example, staff weren’t allowed to leave through the front door,” he said.
“If you wanted to go to the food court, there were strict rules preventing staff from using the front entrance, even for a 10-minute coffee break. I would get written up simply for going out the front.
“You had to use a hidden back entrance and walk all the way around just to step out for a 10-minute break.
“Even to operate cash registers in suburban stores, you had to travel into the city for a full day of training.
“Fitting rooms also had to remain locked, meaning employees had to collect a key and escort customers into the change room. It was all considered part of the experience.”
Brands have withdrawn stock from David Jones stores across Australia, leaving large sections of some floors empty
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An abandoned section inside a David Jones store
Once crowded with shoppers, many David Jones stores now resemble ghost towns
Despite the retailer’s collapse, Franco believes David Jones still holds a special place in the memories of many Australians.
“People have such good memories of David Jones. They didn’t simply go there to shop; they would spend an entire day drinking champagne and watching the band play,” he said.
“The store where I worked had a very busy cafe, while some of the city locations included butchers and salons.
“There was much more to the experience than simply buying a pair of socks. That offering declined over the years, and that may have contributed to what has happened.”
The collapse has also dealt a serious blow to suppliers. Family-owned bathrobe brand K Juliet said it felt “crushed” and feared it would receive nothing from David Jones for its stock, forcing the business to sell the products elsewhere.
“Lots of tears have been shed. A massive dream of ours was crushed before it had really begun, and the reality is that we won’t see a dollar,” a spokesperson said.
“Just remember that behind all the headlines are many small businesses and people who have been affected. We don’t have huge amounts of capital or large teams to support us, so while it may seem like just another ‘business loss’, it is significant enough to put everything we have at risk.”
Insolvency firm McGrath Nicol has been appointed administrator, while receivers from FTI Consulting have also taken control of the retailer.
The collapse has also devastated suppliers, with family-owned bathrobe brand K Juliet saying it felt “crushed” and feared it would receive nothing from David Jones for its stock, forcing the business to sell it elsewhere
Model and David Jones ambassador Miranda Kerr in 2011
Jesinta Campbell walks the runway during the David Jones opening event at the 2016 Melbourne Fashion Festival
Scentre Group, which operates 42 Westfield centres across Australia, claimed on Wednesday that David Jones had breached its lease agreements by failing to pay its October rent.
David Jones had requested a pause on rent payments and sought permission to close several stores before their leases expired.
The retailer also reportedly asked landlords to release about $70 million held as lease security so it could pay employees and suppliers.
The property group reportedly offered to defer rent payments and allow David Jones to close some Westfield stores over the following 12 months.
However, the retailer’s private equity owner, Anchorage Capital Partners, rejected the proposal, clearing the way for David Jones to enter administration.
“We made a generous offer to Anchorage Capital Partners that would have enabled David Jones to continue trading, and we are disappointed that they rejected it,” Scentre CEO Elliott Rusanow said.
Customers have been assured that David Jones gift cards can still be redeemed.