06/02/2008 - 22:00

Claremont retail boost

06/02/2008 - 22:00

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David Jones Ltd has confirmed plans to substantially increase the size of its Claremont store by early 2011 to tap into Perth’s increasingly affluent western suburbs demographic.

David Jones Ltd has confirmed plans to substantially increase the size of its Claremont store by early 2011 to tap into Perth’s increasingly affluent western suburbs demographic.

The retailer has just signed a 20-year lease with Claremont Shopping Centre owners Multiplex and SPB (Australia) Pty Ltd, with two 10-year renewal options.

The existing David Jones store is scheduled to close in early 2009, as part of a massive redevelopment of the centre to incorporate 75 residential apartments and commercial office space. The $460 million redevelopment will create a total retail space of about 30,000sqm over two levels, triple the current area.

The centre will also include an active retail streetscape and 600sqm of commercial offices, with the first stage of the residential development due for completion in the middle of 2008. 

David Jones chief executive Mark McInnes said the Claremont store would be world class, with 60 per cent more floor space and an enhanced brand portfolio and category mix.

Mr McInnes said the store would generate $5 million of EBIT annually.

David Jones said in a statement that the Claremont catchment area was now within the top five suburban demographic locations in the nation, while Perth was forecast to experience the highest average growth of all Australian capital cities over the next decade, including population (1.3 per cent per annum) and department store type spend (5.6 per cent per annum).

Mr McInnes said the temporary closure of the Claremont store would have little impact, as a significant proportion of existing Claremont sales were expected to be captured by Garden City, Karrinyup, and Perth stores.

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