David Jones re-opens online store, rivals say move will help lift sector’s profile

Online retailers have welcomed David Jones back into online retailing, saying the department store has caught up with the rest of the industry and will help encourage more Australians to shop online.

David Jones had an online store in the early 2000s, but when the dotcom boom ended, the company abandoned its e-tailing.

But tech entrepreneur Ruslan Kogan says while the return of the company to online retailing will help establish the “normalcy” of the sector and warns some of David Jones’ design choices could turn users away.

“All in all, I think it’s an excellent move. It’s good to see there are organisations out there making the move into online retail. It gives customers a huge amount of convenience, and really makes it easier for them to compare products.”

“But their website does have a lot of “don’ts” in terms of online retail. They have a dark background with light text, which hurts people’s eyes, and some of their pages have flash animations and are taking some time to load. These are little things, but they could turn people away. Overall, however, it’s a good move.”

But DealsDirect chief executive Paul Greenberg says the site is in its early stages and the important thing is that a huge retailer has now prompted more users to shop online.

“I think it’s a pretty good move for them. It’s easy to critique the site, but people forget David Jones is a business that is 107 years old, and they have a good brand position. They will do well from this.”

“My view is that increasingly, people have become smart retailers and now there is no such thing as online or offline, it’s multichannel. That is now the norm, and most efficient and good retailers are on board.”

“Broadly, we are a bit behind the eight ball. But as we go on it will become less of an issue.”

David Jones says the online store will be able to assist customers who are trying to save on time. Right now the store offers 1,500 products in a variety of departments including books, appliances, children’s toys and beauty care products, but the company hopes to expand.

“For the busy or time poor our online store offers an alternate way to shop with not only the convenience of one easy transaction but also a one-stop flexible shopping experience created with superior delivery service including speedy despatch and gift wrapping options,” chief executive Paul Zahra said in a statement.

Online businesses have said for some time online retail is lagging in Australia due to the lack of large department stores with a web presence. Greenberg says this will push more customers online, but he also says he isn’t worried about the extra competition.

“I think online retail is splintering. It is becoming much more about focusing on a set of people, and really, I think you can’t be everything to all men. So we are still growing to thrive.”

“For a business like ours that has been online for quite awhile, I think we’ve got the right formula. We’re not going to adjust from what we’ve been doing because we have a good brand perspective and self-awareness.”

Kogan agrees, and says there are many different companies heading online that it’s just a part of doing business.

“It has taken them awhile, but it’s good they are coming online now. And with so many businesses doing this now, it’s just a part of operating as a retailer. You need to make the process as convenient for people as possible.”