I think DJS will ok given their product mix. They don't have the sorts of challenges some other retailers have. As much as I like JBH as an investment, they need to reinvent themselves as a retailer. The whole CD and DVD section is slowly becoming less and less relevant as downloading and online take hold.
DJS do not have those sorts of challenges, as their product mix is broader. They are not immune, yet they have a better of success than Myer, Big W and Target who all have challenges for various reasons.
I also think their services offering are really sensible and that is also an area for growth. Some retailers such as Officeworks are seeing revenue growth by expanding their services offering to the detriment of other smaller specialist retailers.
One misstep in my opinion though was to remove the very modest discount card, which I think was a great way to get customers to buy into the store card routine and not use a credit card. The purpose I think was to pave the way for the silly Amex deal, which I think is pretty ordinary.
The customer service at the card centre is also very ordinary and reconfirms in my mind how much bulldust and a con the concept of outsourcing such things is. As long as executives get shown the right metrics and the board is happy they don’t see how dysfunctional outsourcing is.
That said, (IMO) DJS is a great retailer to own as leverage to whenever we have a spending recovery. I still like owning WES and WOW; however, DJS has a place.
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