David Jones has recorded its strongest-ever sales and foot traffic, according to its receivers, as Australians continue to support the department store following its collapse into administration.
The 188-year-old retailer entered voluntary administration and receivership on Thursday after failing to pay rent to Westfield owner Scentre Group, placing the jobs of about 6,000 employees in doubt.
The surge in trading comes as David Jones revises its refund and exchange policy while the administration process continues.
Customers who bought products before November 7 will have 30 days from the date of purchase to seek a refund or exchange. Shoppers who placed orders online will receive an additional five days.
Gift cards, food, furniture and bedding cannot be returned.
Gift cards and existing store credits can still be used at stores that remain open, while paid orders and lay-bys already in progress will continue to be fulfilled as usual.
However, the retailer has stopped selling new gift cards, leading consumer advocates to encourage customers to use any remaining balances promptly.
In a statement issued on Monday, receivers Christopher Hill, David McGrath and Joanne Dunn, of FTI Consulting, said David Jones was “fully operational and serving customers throughout Australia and New Zealand”.
David Jones has recorded record sales and foot traffic as Australians support the retailer after it entered voluntary administration and receivership
“Since the receivers’ appointment, foot traffic and sales across David Jones stores and online have reached record levels, reinforcing the public’s affection for David Jones and support for an iconic Australian brand,” the statement said.
“Following the strong trading in recent days, the receivers are placing replenishment orders in the normal course of business with suppliers that have confirmed trading agreements, with Hilco’s support.”
The receivers said promotional campaigns would continue ahead of Black Friday, with customers still able to shop a range of leading brands.
“The receivers have received very positive engagement from David Jones’ trade partners and are working with them to ensure customers continue to access leading brands,” they said.
“Promotional activity in stores and online will continue to be assessed over the coming weeks, as it would during any trading period, particularly as we approach Black Friday.
“We look forward to continuing to welcome customers into David Jones stores to enjoy the unique David Jones shopping experience.”
Despite the strong trading performance, the retailer’s future remains uncertain. The receivers said no final decisions had yet been made about employees or other stakeholders.
“We continue to review operations in the context of the plan the company was developing before our appointment,” the statement said.
David Jones entered voluntary administration on Thursday after failing to pay rent to Westfield owner Scentre Group, putting the future of the 188-year-old retailer and its 6,000 employees in doubt
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“When final decisions are made, David Jones will communicate them first to any employees and other stakeholders who may be affected,” they said.
“We ask that speculation about this matter be avoided out of respect for the real people at the heart of the David Jones business, who continue to put customers first every day.”
David Jones chief executive Erica Berchtold thanked customers last week for continuing to support the retailer.
“We have a well-developed plan to reset the business for the future and will work with the administrators, receivers and our secured lender as we continue to pursue that reset,” she said.
