David Jones cuts back Web, IT operations

David Jones plans to reposition its Web site as "principally a marketing site" -- with general merchandise purchases no longer available after mid-July -- as part of a wide-ranging restructure of the heavyweight retailer's business.

In a strategy review document released to the Australian Stock Exchange (ASX), David Jones said that despite the restructure, Christmas hampers would "continue to be available for purchase online from October to December" and services such as access to David Jones card statements and investor information would continue to be provided.

However, "general merchandise purchases [will] no longer [be] available after mid-July," the retailer said.

The company plans to take a non-current asset write down charge of AU$4.4 million and a restructuring charge of AU$1.9 million in the 2003 financial year to accommodate the change.

David Jones has also unveiled plans to undertake a range of cost savings across its information technology area over the next couple of years, including the consolidation of IT services, the automation of test-scripts for mission-critical applications, a review of stores' network bandwidth and IT service process re-engineering.

The online and IT cost-reduction moves are, according to the company's chief executive officer, Mark McInnes, part of a program designed to enhance shareholder value by focusing on the core department store business.

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Talkback 3 comments

    Online purchases is the only r ...Anonymous -- 03/06/03

    Online purchases is the only reason I got thier credit card .... talk about cutting off your nose ... I think DJ's will regret this.

    Problem stems from companies j ...Tony Stiller -- 04/06/03

    Problem stems from companies jumping on the dot.com ride without have a fully developed e-business strategic plan in the first place.

    From an Aussie living in USA - ...Anonymous -- 29/07/03

    From an Aussie living in USA - Is David Jones crazy? What an odd decision! I am now looking for a modern internet shopping site so that I can spend & send.

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