Department store retailer David Jones has defended its turnaround strategy after Country Road, Witchery and Mimco decided to slash their presence across its store network.

The owner of the three brands, Country Road Group, will cut 100 of its 283 concession stands across the David Jones store network, according to news broken by The Australian Financial Review.

The news comes in a lengthy period of turmoil for the retailer, which has recorded $170 million in losses over the prior two financial years. It has received widespread allegations of not paying suppliers on time, which led CEO Erica Berchtold to admit that the company has a “perception problem”.

Berchtold has since committed to a five-year transformation plan at David Jones: Its “Inspire 30” strategy.

The company told Inside Retail that Country Road Group’s cuts to its partnership fall within this strategy. “David Jones is continually evolving its brand portfolio to ensure it remains relevant to its customers and supports the ‘Inspire 30’ reset strategy,” a spokesperson said.

“As part of a review of the portfolio, trading terms, and business model, we are working collaboratively with brand partners about an adjustment in their exposure across our store network.”

David Jones declined to confirm whether the decision with Country Road Group was planned in advance.

“It is our intention that our brand partners will maintain a presence across the network with a focus on the locations with the strongest potential for growth,” the spokesperson added.

“David Jones continues to create new opportunities for our partners as well as expanding new brands and growing our exclusive and private label offer.”

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