We're mourning David Jones going into administration...what about the small businesses on the racks?
I've seen so many (understandable) lamentations over the news that David Jones has entered voluntary administration. After 188 years, it's hard to fathom an Australian retail landscape without the familiar black and white signs, their floral displays, grand piano and their flagship store on Castlereagh Street - with such atmosphere that was once a destination in itself. We remember the excitement of seeing the DJs Christmas windows in our childhoods - I certainly took my kids to marvel at them.
I can't help but wonder though - how many of us posting about its demise with such sadness have actually shopped there regularly in recent years?
We loved the idea of David Jones. Maybe we just stopped spending enough money there.
Of course, its financial troubles are more complicated than that. Rising costs, changing shopping habits, online competition and an expensive retail footprint have all factored in.
Mainly, I'm thinking of so many employees facing an uncertain future. Many have spent years - even decades - working for DJs. For them, it is their livelihood, their financial security and a workplace they've been part of for a significant portion of their lives. Frankly, it's bloody awful.
From a commercial perspective, while DJs harboured overwhelmingly upmarket and luxury brands, I'm thinking of the up-and-coming Australian businesses who had finally got their foot in the grand DJs door.
One of the things I appreciated about DJs it was its willingness to stock interesting Australian brands, such as newer women's fashion labels that weren't yet household names. You could wander through the fashion floors and discover a designer you'd never heard of. Something beautiful, a little different, made by a relatively small Australian business. How would it have felt for those business owners to learn that DJs had placed their first order with them? Incredible, I imagine - being stocked by DJs carried serious credibility. Exposure to customers across Australia - and international visitors - who might otherwise never have discovered your brand. For a small business, that opportunity is priceless. (Example: Little guys in limbo as indebted retail giant collapses | Canberra CityNews)
Today though, numerous suppliers are reportedly owed money for stock already delivered, with payment delays having stretched out over months. Others operate concessions and face uncertainty about their stock, staff and future trading arrangements. For businesses without the financial resources of larger brands, the consequences will likely be serious. Even for those fortunate enough not to be owed money though, there's another potential loss they're facing.
Where do they go now?
Building an independent brand is hard enough. Social media and online shopping have undoubtedly opened doors for small businesses. But having your products physically displayed in a respected department store, where customers can see, touch and try them, offers something completely different. Replacing that exposure is more complex than setting up an Insta account and seeing what happens. A small business can do everything right and still find itself vulnerable when a much larger business it relies on runs into trouble.
DJs may well survive in a smaller, restructured form - I hope it does. Whatever happens, I feel for the employees whose futures are now uncertain, and for the independent designers, makers and business owners who worked so hard to get their products on the racks.
Perhaps, amid all the nostalgia, we can make an effort to seek out some of those Australian brands - and support them directly...while we would miss David Jones, for the people who worked there and the smaller businesses behind its shelves - the loss will be considerably more personal.
*Commentary only. Not financial advice.
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