Six months after launching its media retail business, luxury retailer David Jones is attracting new advertising clients such as Jaguar Land Rover, Destination Canada and Regent Cruises, aiming to boost its profits by at least $35 million a year.
The 186-year-old branch, in recovery and owned by Anchorage Capital Partners, has signed a new partnership with Criteo, the Nasdaq-listed generation platform, to force the online component of its new branch in a bid to diversify its profits. streams. and increase your profitability.
David Jones Amplify expects to generate $35 million a year in profit from its new retail media division. Paul Rovère
David Jones Amplify aims to capture a percentage of Australia’s developing retail media market, worth more than $2 billion, by delivering targeted classified ads to its largely thriving visitor base. Retail media is an umbrella term used to refer to in-store advertising that leverages shopper knowledge and loyalty systems to target others close to the point of sale.
Supermarket giants Woolworths and Coles led the retail media rate in Australia, charging $550 million and $250 million respectively, to Morgan Stanley.
James Holloman, David Jones’ lead marketing director, began applying in the retail media sector in May 2021 and returned to Australia after applying for LVMH in Hong Kong.
“The average store would generate $30 million to $35 million through [retail media]. I can say that at David Jones we have set our goals quite ambitiously and we hope to be above average,” he said.
David Jones has 5. 4 million consumers a year, 3. 6 million of whom are members of the David Jones Rewards program. More than a portion of those members have made purchases in the past 12 months.
But David Jones welcomes 55 million visitors to its traditional retail outlets and 110 million online visitors a year, creating a vast set of opportunities for its retail media division.
Criteo is a $3 billion virtual advertising company that handles online classifieds for high-end retail branches Nordstrom, Saks Fifth Avenue and Selfridges. This will help David Jones monetize sponsored search effects in his online store and classified ads targeted at the same “off-site” consumers, when browsing elsewhere online.
Colin Barnard, managing director of Criteo in Australia and New Zealand, said his retail generation has evolved with high-end retail outlets in mind. “If David Jones requests a feature, we’ll agree to upload it,” he said. he said. ” There’s a good chance that if they ask for it, Macy’s will ask for it. “He added that Criteo’s length would make it less difficult for Jones to unlock ad spend from global ad agencies.
Holloman said travel, high-end lifestyle and automotive brands have already shown interest. “In the first part of the year, we started doing some wonderful campaigns with other key brands: Regent Cruises, Destination Canada, Jaguar Land Rover. ” he said. So, for anyone who needs to speak to a premium audience. “
Retailers have a long history of relationships with their suppliers to pay for in-store advertising. However, they are now in direct competition for advertising profits with classic media such as television and radio.
“We are pleased with our multimedia products,” Holloman said. We believe they are comparable to any other publisher on the market. “
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