David Jones was unprepared for the new world of online retail after the global financial crisis.

That’s the frank assessment of its former CEO, Paul Zahra.

Speaking at a QUT Business Leaders lunch in Brisbane, Zahra said David Jones had outdated technology and no digital plan when he was appointed CEO of the department store chain in 2010.

He said the retail world changed after he took on the him, with an explosion in the number of online retailers from overseas and a high Aussie dollar fuelling their sales, both of which steered customers away from Australian shops.

There was also an avalanche of international speciality retailers, including H&M, Zara, and Sephora launching in Australia.

“With all this going on, David Jones had no digital strategy and a web store that had been previously closed in 2003,” Zahra said.

“So we were simply not prepared and this is what I have termed the perfect storm – sales were plummeting and consumer and employer confidence was at an all-time low.

“It was an extremely challenging time for the company and for me personally.”

Zahra departed David Jones in 2014 after four years at the helm when South African retailer, Woolworths, acquired the high end department store chain.

His successor, Iain Nairn, stepped down in September to make way for former Marks & Spencer executive, John Dixon, in what has been described by analysts as a brutal decision by Woolworths given sales were turning around under Nairn’s leadership.

AAP

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