Almost a year after outlaying AUD2.1 billion (USD1.56b) for David Jones, South African retailer Woolworths is preparing to sell two of its landmark central business district stores to fund hundreds of millions of dollars of investment in IT systems, stores and new food venues – reversing years of underinvestment at Australia’s oldest department store.

Woolworths chief executive and David Jones chairman Ian Moir has confirmed that David Jones was close to making a decision to sell one of its two Sydney CBD stores and one of its two Melbourne stores in deals which could raise almost AUD400 million.
The proceeds would be invested into new financial, merchandise and customer relationship management systems, a new customer loyalty and financial services program, store refurbishments, improved visual merchandising and overhauling David Jones’ four ageing food halls – lifting Woolworths’ investment in David Jones to more than AUD2.5 billion over the next few years.