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Past successes and service count for little in business.

Department store group David Jones is being challenged.

A long 188-year journey (founded in 1938) is laudable. It’s the global record for a single brand-name department store. However, the entity is contracting: down to 39 outlets; some are being reduced in size; product ranges are being narrowed; brand names are being deleted; and staff numbers will be rationalised.

Myer, established in 1900, has 57 outlets, and they, too, are being recalibrated.

There is a need to attract younger consumers, grow online presence and transactions, and reintroduce “retail theatre”. Many consumers consider Australian department stores (including the discount operators Kmart and Big W) dull, boring, repetitive, and too predictable.

Jobs, careers and prospects are being closely reviewed for the sector’s 21,000 employees.

Loyalty programs and incentives appear to be of marginal influence and appeal. So too are the shopping experiences in-store at Costco and online with Amazon.

This is a worldwide trend. Saks 5th Avenue is currently operating under Chapter 11 Bankruptcy protection. Debenhams in the United Kingdom entered administration and closed in 2021.

What does the immediate future hold for department stores, David Jones in particular? Do these businesses stand at the precipice, and is there an existential threat? The options may narrow down to a breakup, a sale, or a closure. Maintaining operations and policies does not appear to be attractive or viable.

And what are the implications for consumers, some of whom enjoy regular doses of retail therapy?