David Jones pockets AU$9m per year in IT savings

David Jones has announced plans to save almost AU$9 million per year through a raft of technology initiatives.

Since 2003, David Jones has been investing in its IT infrastructure, introducing wireless networks, and replacing scanning devices as well as upgrading its merchandise, finance and HR systems, group general manager IT Karen McLachlan said.

While wireless infrastructure and scanning devices have been used in stocktaking and pricing at David Jones for some time, according to McLachlan, now the retailer is expanding the use of handheld devices.

The devices will reduce the time spent on manual checks and processing of stock arriving and exiting the store at the receiving dock and will also lower back-of-store costs by identifying high-profile items when it arrives at the dock, according to McLachlan, saving AU$4.2 million per year.

As items enter the store, the devices will also be used to identify and record when suppliers have not complied with standards for hanging clothes and ticketing items, McLachlan continued. Either suppliers change to full compliance, or the costs related with incorrectly hung or ticketed items will be recovered, resulting in AU$4.2 million dollars annual savings for the retail chain.

RFID has not, however, found its way into the department store. "We are not planning on the implementation of RFID technology in the short to medium term," McLachlan said.

Other technology cost saving moves include reducing training costs by AU$600,000 per annum via online training.

IT also plays a role in enabling a number of the business initiatives, McLachlan said, such as those being implemented to reduce store administration costs. The initiatives will be implemented over the period from the 2009 financial year to the 2012 financial year.