What: David Jones' CEO is reviewing the retailer's store portfolio and its trading terms with suppliers and brand partners, as store closures are floated across a network of 38 stores in Australia and New Zealand.

Why it is important: Shrinking the store network is becoming a condition of survival for Australian department stores, as David Jones and Myer cut footprints while consumer demand weakens.

David Jones, Australia's oldest department store, is reportedly close to collapse after 188 years and is looking for a financial backer with deep pockets, according to The Australian. The retailer is said to have struggled to pay some suppliers and to have lost brands including Christian Dior, Gucci and Chanel. A company spokeswoman confirmed that CEO Erica Berchtold is reviewing the store portfolio and the trading terms with suppliers and brand partners, and is in advanced discussions with key stakeholders as she accelerates the INSPIRE30 strategy. Berchtold took the role in June, when David Jones also announced a refinancing partnership with Hilco.

Trading conditions are dire as shoppers tighten spending amid rising interest rates and fuel prices. Retail property group Vicinity reports department store sales down 6.5 per cent over the past three months. Consumer analyst Barry Urquhart argues the issue is capital inadequacy and liquidity, and that a strong Christmas would only delay the outcome. Associate Professor Carol Tan of RMIT University believes the business can be saved with fewer stores. The chain operates in Australia and New Zealand and is believed to employ more than 5000 people.

IADS Notes: The review of David Jones' store portfolio and supplier terms follows a sequence of restructuring steps. The closure of the Castle Towers and Tuggerah stores in January 2026 was presented as network optimisation alongside omnichannel investment (Daily Mail, December 2025). A $74 million loss then came with head office cuts and late payments to key suppliers, while owner Anchorage Capital Partners pledged continued investment (Sky News, April 2026). Erica Berchtold's appointment as CEO came with a three-year asset-backed lending facility from Hilco Capital and the launch of the Inspire30 strategy (WWD, June 2026). The pressure is shared across the Australian market: Mecca's exit from Myer after 17 years removed a major beauty traffic driver, while David Jones was investing in premium flagship experiences (nine.com, July 2026). Myer's $276.5 million FY2026 loss, its worst since 2018, was attributed to higher fuel prices, three interest rate rises and a weaker housing market, with trading in the first eight weeks of FY2027 described as as challenging as, or worse than, the second half (The Senior, September 2026).

David Jones reviews store portfolio and supplier terms amid collapse reports