David Jones to close Marion and West Lakes, leaving Rundle Mall

Why it matters

The Marion store sits in Westfield Marion, and the loss of a department store anchor is a leasing question for any centre. The 6 November InDaily report quoted MST Marquee analysts who said the Marion store could be at risk of closure. Five days later the closure was reported as confirmed.

For a centre owner, losing a department store anchor opens a large floor plate that has to be re-let or redeveloped. InDaily does not name the landlords for the Marion or West Lakes stores, so who holds those leases is not stated here.

The closures also land during the Christmas trading period. The receivers expect the 19 stores to cease trading by the end of 2026, and InDaily reports the smaller footprint takes effect after Christmas.

The numbers

According to InDaily, the closures break down by state as follows:

• New South Wales: 7
• Victoria: 3
• Western Australia: 3
• Queensland: 2
• South Australia: 2
• Australian Capital Territory: 1
• New Zealand: 1

David Jones employs around 6,000 people. InDaily says thousands of jobs are expected to be lost across the 19 stores. Staff were told on 11 November and a seven-day consultation period follows.

The retailer was placed into receivership on a Thursday morning, according to InDaily’s 6 November report. Receivers Christopher Hill, David McGrath and Joanne Dunn of FTI Consulting said the physical and online stores would keep trading as normal. FTI’s Hill pointed to rising costs, an outdated store footprint and supply chain problems.

The other stores listed to close include Robina Town Centre and Sunshine Plaza in Queensland, and Parramatta and Macquarie Centre in New South Wales.

What’s next

The receivers’ statement, as quoted by InDaily, said “Whilst the impacts are highly regrettable, the Receivers believe the steps are unavoidable.”

Three things are worth watching in Adelaide. The first is the outcome of the consultation period for Marion and West Lakes staff. The second is whether the centre owners announce plans for the vacated space. The third is whether Rundle Mall, now the only South Australian store, survives the wider restructure.

InDaily also reported that luxury concession brands, including Gucci, Saint Laurent and Bottega Veneta in the Melbourne flagship, were seen removing stock after the receivership began.