DJs heads south after 178 years

AUSTRALIA’S oldest department store, David Jones, is relocating its head office from Sydney to Melbourne – a move affecting 600 staff – because it wants to be in Australia’s “fashion capital”.

South African retailer Woolworths, which bought David Jones in 2014, plans to start moving staff to Melbourne from September next year.

Woolworths chief executive Ian Moir says the relocation was a “no-brainer” because Melbourne has more fashion business headquarters than Sydney.

“Melbourne is really seen as the fashion capital in Australia,” he said. “What that does is give you a bigger talent pool.

“It also gives you an environment where you are close to fashion which makes it easier for your suppliers to visit you more often.”

Woolworths also owns the Country Road fashion business, which has 680 head office staff already based in the Melbourne suburb of Richmond.

They will move to join David Jones in the new head office on Richmond’s Swan St.

Archrival department store Myer is already based in Melbourne. Mr Moir said Sydney rents were expensive and housing both head offices together was cheaper and more efficient.

David Jones was founded in Sydney 178 years ago.

Currently some staff are based in the retailer’s Market St store, while others are housed above its flagship store on Elizabeth St.

Market St has been put up for sale with David Jones’ lease to run for three years. Elizabeth St will undergo a $200 million redevelopment in the second half of 2017, expanding to 11 floors with the conversion of four upper floors currently occupied by head office.

The famous seventh floor, used for functions and fashion parades, will be converted into a restaurant.