Post by Brian Walker

I’ve known Erica Berchtold professionally for many years, and Erica is a true retailer and a remarkable leader. Erica understands that customer relevance, experience, differentiation, and commercial discipline are inseparable. David Jones enters this next chapter with annual sales of approximately $2.0 billion, an 8.7% decline in revenue, and a pre-tax loss of around $95 million. The challenge, and the opportunity, isn’t simply returning to profit. It’s creating a business that generates returns worthy of the capital invested in a complex trading environment. From an investor and retail leadership perspective: Revenue growth back to $2.4–2.6 billion. EBIT margins of 6–8%, producing annual operating earnings of approximately $150–200 million. Gross margin improvement of 200–300 basis points, driven by greater exclusivity, private brands, disciplined buying, and fewer markdowns. Sales productivity increasing 15 - 20% per square metre, demonstrating that existing stores are becoming materially more productive. Inventory productivity lifting through stronger stock turns, releasing cash from working capital. Cost of doing business reducing by a further 100–150 basis points. Return on invested capital consistently above 12–15%. It won’t happen overnight. However, they have the right leader for the task and the opportunities ahead. Brian Walker Retail Doctor Group - Strategy | Transformation | Performance