Upmarket David Jones is undertaking a $100 million upgrade of its food business over the next three years, which will include the roll-out of stand-alone branded convenience stores.
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It is a brand new concept for the department store chain and reflects the changing habits of shoppers who want food experiences.
The first stage of the "food journey" will be the launch of a new-look food hall at the Westfield Bondi Junction David Jones in August. This will be followed by a food market in the smaller store at GPT Group's Wollongong Central shopping centre. Then in November, the Bourke Street, Melbourne, store will have its food area refreshed.
But the crux of the plan is the new stand-alone stores, which will offer the same experience as the famous food hall in the Sydney flagship store, but will have "curated" lines of products.
They will be about 300 to 500 square metres, most likely in popular shopping strips. David Jones directors declined to comment on locations or if they will be in malls.
It is a response to concerns within David Jones that the food business had "fallen off the food map".
David Jones' chief executive John Dixon said food provides a "halo" effect as it brings in shoppers who can have a coffee and a meal, then browse through the rest of the store.
He said it was one of the biggest challenges ahead for the business, given that as much as $245 million is spent daily on food, according to surveys of shoppers undertaken by David Jones in its own stores.
"Customers want an experience when they shop and food plays a very important function in driving shoppers to the store," Mr Dixon said.
"We will be offering more private label David Jones products, as well as sourcing the best quality Australian food."
David Jones has engaged well-known chef Neil Perry to work on the new food offerings, which includes beef from Tasmania, wine from Canberra and ham from Marrickville's Black Forest.
There will be ranges of olive oils, antipasto and cheese, along with cakes and sweet snacks. The group is already working with Oz Harvest and is looking at packaging to minimise waste.
At Bondi Junction, the revamped food hall will have an oyster bar with a wide selection of wines, a butcher as well as pre-wrapped meat for the grab-and-go shopper.
Mr Dixon said the range of products, with pre-cut vegetables and marinated meats and pasta sauces, will allow people to have a meal ready within 15 minutes of getting home.
"We have looked at all the best food outlets in the world including Eataly, La Place in Holland and Marks & Spencer, and wrapped them all up in our new offerings," Mr Dixon said.
He said the arrival of Amazon would have an impact on general retail but "David Jones has an online presence and a great food offering".
