David Jones is reviewing six stores in less profitable locations with leases that are due to expire within five years.
It also plans to open new stores, offering free wireless internet for customers, more staff and newer cash registers to enable faster service.
The department store today unveiled a 14 per cent drop in first-half profit to $73.5 million and flat sales of $1.004 million.
While the profit result was better than many analysts had expected, David Jones chief executive Paul Zahra shied away from making financial forecasts for the second half.
He said he was cautious about consumer sentiment while people continued to save high proportions of their pay packets.
David Jones shares were up 12¢ to a 16-month high of $3.08 at close of business.
The retailer’s turnaround strategy was appearing to reap benefits but the cost of making changes to its business would still be felt into at least the next half, IG Markets analyst Evan Lucas said.
He also noted David Jones did not perform as well as rival Myer, which increased its first-half profit by 0.7 per cent, because it started its turnaround plan later.
‘‘Myer got the jump first,’’ he said. AAP
