David Jones sales growth is crushing the competition

Graham Denholm/Getty Images for David Jones

David Jones is walking all over the competition when it comes to sales growth.

Its South African parent company Woolworths Holdings just posted a trading update showing its Australian department store increased sales by 8.4% in Australian dollar terms for the year to June 26.

Sales in comparable stores grew by 7% and net retail space grew by 3.5%.

Part of the David Jones strategy is an expansion of private label brands, including some from South Africa.

Country Road Group sales, including sales in South Africa, increased by 5.5% but sales in comparable stores were 3.9% lower.

Competitor Myer is also improving its revenue but is still behind David Jones in terms of sales growth.

In May, Myer posted a 2.1% rise in third quarter sales to $675.5 million, beating analyst expectations of about 1.5%.

The comparable store numbers for the 13 weeks to April show a 3.4% rise. Year-to-date total sales were 1.9% higher to $2.47 billion, up 3.3% on a comparable store basis.

Myer is working to a new strategy, which includes $480 million capital investment and a target of greater than 3% improvement in sales between next year and 2020.

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