Wollongong's David Jones store has begun tightening its belt, cutting permanent part-time hours by 20 per cent where sales have dropped.

Disgruntled staff say sales target commissions are withheld if they do not issue at least one DJs credit card a month.

The store says the moves are the preferred alternative to job cuts in tough times.

Many employees are devastated by not only the cuts but the manner in which they are being implemented.

"There is no negotiation or attempt to come up with less painful solutions to the problem," said one employee who did not want to be named.

"Employees are called in and told the new terms of employment, no questions asked."

It is understood many have been moved to tears and it has been noticed by customers.

Group general manager Paul Zahra said a tougher economy had resulted in slipping sales in a number of David Jones stores, including Wollongong.

"We are the premium end of retail and have to plan for this," he said. "We have 140 employees all up and we have cut hours for about 30 permanent part-time employees as a result of the trading environment."

Mr Zahra said it was part of normal business practice in retail and it was done in line with an enterprise agreement.

He described hour reductions (which can only be done once a year) as a preferred alternative to job losses. "In retail we have peaks and troughs but it is important everybody comes out of it in the end."

He denied the attitude had been brutal, calling the reductions "considered and diligent", with union consultation.

Mr Zahra also confirmed changes to the way commissions, or incentive schemes, were paid. "The store card is important to the company strategy to build loyalty and it allows us to access customers about special offers," he said.