Troubled retailer David Jones plans to create up to 300 new jobs to improve customer service and to open more stores as it battles to restore its fortunes.
The department store chain warned this week that its net profit for the 2011/12 financial year would plunge by up to 40 per cent after it reported its first half earnings dropped by a fifth.
David Jones outlined plans for a massive revamp of its business in the hope it will get customers back in its stores and splashing their cash.
It will create 100 new floor staff supervisor jobs plus 200 frontline service roles to deliver specialised services to shoppers.
The retailer also plans to increase incentives for staff to sell more goods and provide extra staff in fitting rooms to help customers.
And, it will expand its chain of 36 department stores across Australia by opening smaller scale shops.
As well as having more staff to help them and stores to choose from, David Jones customers could also be in line to benefit from cheaper prices on imported goods.
David Jones chief executive Paul Zahra said Australian retail prices were high compared to overseas, a fact that had become obvious to the droves of shoppers who opted to buy goods online from foreign stores.
He said David Jones was negotiating with suppliers to ensure the wholesale prices it pays are on par with those paid by foreign retailers, so it can charge shoppers similar prices to those in overseas stores.
Mr Zahra said some suppliers such as Yves Saint Laurent, Kiehls, Lancome, Fossil and DNKY had already decreased the wholesale prices they charged David Jones.
But, while lower wholesale prices would mean lower sales tags for customers, Mr Zahra said David Jones would have to focus on lifting sales volumes to offset the impact of cheaper prices on its earnings.
