David Jones Said Sales Are Flat

It looks like David Jones will not have a merry Christmas this December. The department store chain said it is expecting a flat sales result even during the height of shopping.

Bob Savage, chairman of David Jones, said consumer sentiment remains gloomy even when the Reserve Bank of Australia has implemented interest rate cuts.

Paul Zahra, meanwhile, said the company would continue to work hard even when it is expecting flat sales results. The chief executive of David Jones echoed Savage’s sentiments, saying that consumer confidence is critical and that it is the biggest challenge why the company is not performing that well.

Savage said if consumer sentiment does not change, any implemented strategy of the company would only yield good results. He added that the management team would be rewarded based only on what would happen to the economy and the effect to the company.

Industry observers, however, said that consumer sentiment is not just the biggest challenge facing David Jones. Its lack of customer service appears to play a role in the lackluster performance of the company.

David Jones has been in business since 1838 when Welsh immigrant David Jones founded the company. Currently, David Jones has 37 stores all over Australian states and territories.