David Jones Limited
(ASX:DJS) will conduct an extensive review of its property portfolio as leases expire, with stores to be redeveloped into smaller formats, according to media reports.
The search is reportedly also on for new sites in neighbourhood strips across the country, based on the village format store in Malvern, Melbourne.
It has been described as one of the most thorough reviews being planned by the department store chain in many years.
In the past, the leases were automatically rolled over, irrespective of the performance of the stores.
But in the next five years, leases for six stores will expire, and David Jones is expected to vacate and use the opportunity to take up smaller spaces in locations better suited to its prestige demographics.
David Jones generated a net profit of $95.2 million in fiscal 2013.
