David Jones reportedly considering selling flagship stores

David Jones has denied that it has plans to sell its prime retail space in Sydney and Melbourne to sure up capital as profits fall by 40 per cent. David Jones profits have recorded a profit slump down from $168 million to $101 million.

It is true however, that David Jones has hired an independent property consultant to evaluate how much can be attained for the sale of the much valued commercial real estate at Market and Elizabeth Streets and its two Bourke Street stores in Melbourne. The combined value of this potential sale is estimated to worth up to $619 million and possibly more should current developments come to fruition.

The chief executive Paul Zahra said that the profits are on course for the predictions and the difficult trading conditions have contributed.

"We are confident that the investment we are making in our business and in the implementation of our strategy will position us well for long term success in the current changing retail landscape.

"We are also committed to further evaluating and analysing the development potential of our property portfolio to enable us to unlock additional value for shareholders," he said.