David Jones future in doubt as department stores become "obsolete and redundant", says retail expert

2026 could mark the last festive season for retail icon David Jones. The ABC understands a decision on the fate of the department store chain could be made within 24 hours. Its three person board is set to decide whether David Jones will enter administration. It's understood the 188-year-old retailer is five weeks behind in its rent. Major landlord, the owner of Westfield, Scentre Group, says DJ's has only paid up until the end of September. Scentre Group says it's made a generous offer to DJ's owners, Anchorage Capital Partners, to keep the stores trading, but that offer was rejected. Retail expert Barry Urquhart is watching the unfolding crisis at David Jones. He says the fate of David Jones will not be determined by the senior management team or the board of directors. "Their future will be determined by their fund managers, their suppliers, their manufacturers, distributors and landlords. That's the reality because this is....about finance, it's not about retailing and merchandising," he said. The managing director at Marketing Focus says David Jones' troubles are not unique. He says the department store model globally is becoming "obsolete and redundant". He says Saks Fifth Avenue is only surviving in the US because of bankruptcy protection. Debenhams in the UK has closed down, and back in Australia, Myer is also a struggling department store. "Department stores have been the magnum, they have been the anchor stores. But in reality, today, they're simply a drag on many retailers because Australian consumers have shifted, they've drifted to big box retailers," he said. He says if David Jones were to collapse, "to 95% plus of Australian consumers it will mean nothing because they don't shop at the department stores, David Jones in particular," he said. "The biggest impact will be superannuation funds because they're investing in property development entities and shopping centre proprietors." #ABCBusiness Subscribe: http://ab.co/1svxLVE Note: In most cases, our captions are auto-generated. #ABCNEWS #ABCNEWSAustralia