David Jones Urges Gift Card Use as Retailer Faces Uncertainty
David Jones customers have been advised to check their gift card balances and consider spending them as concerns grow over the department store chain’s future…
David Jones customers in Australia have been told to consider using their gift cards as the department store chain faces uncertainty over its future. The advice follows reports that some shoppers could not redeem cards over the weekend, an issue the retailer attributed to a technical glitch.
The warning comes as David Jones deals with steep losses, supplier concerns and discussions about reducing its store footprint. For customers, the immediate question is whether a gift card balance can still be used while the retailer works through those pressures.
Why are shoppers being urged to use gift cards?
Eden Radford of consumer advocacy group Canstar advised customers to check whether their cards remain valid and to “put them to some good use”. Radford said unused gift card holders could rank among creditors if a business becomes insolvent.
“Frankly and in reality most of the time that often means you don’t get what you paid for,” Radford said.
Customers who tried to redeem cards over the weekend reported problems. David Jones later said a technical glitch caused the issue, while consumer experts urged shoppers to spend their balances as soon as possible.
The distinction matters. The reported redemption problems were attributed to a technical fault, while separate concerns about the chain’s financial position have prompted warnings about the risks gift card holders could face if a business becomes insolvent.
Losses put pressure on the retailer
David Jones reported a pre-tax loss of $95.45 million for the 2025 financial year, after a pre-tax loss of $74.12 million in the prior period. The figures emerged when the retailer filed delayed annual accounts with the Australian Securities and Investments Commission.
The losses prompted an urgent restructure. David Jones also secured $10m in emergency funding to stock up ahead of the 2026 festive shopping season, with UK-based restructuring and special-situations specialist Hilco Global providing the funding.
Hilco Global was brought in after David Jones missed payments to several key concession holders. Supplier confidence has also been shaken by uncertainty around the business, with Country Road and Gucci among the brands reported to have pulled out.
That strain may affect what customers find in stores as well as how they shop. Industry analysts expect the retailer to keep reducing its physical footprint and put more emphasis on digital sales if it is to survive.
How many stores could David Jones cut?
Owner Anchorage Capital Partners and Chief Executive Erica Berchtold have been negotiating with landlords over a possible major reduction in the chain’s 38-store footprint. The discussions could result in the network being cut by half to stabilise operating overheads.
Some locations have already closed. Stores at Castle Towers in Sydney and Tuggerah on the Central Coast shut in January.
Retail expert Gary Mortimer told 9News he expects David Jones to operate fewer locations. “I think what we will see is a smaller footprint of David Jones stores,” he said, while also saying he did not believe the chain would suffer an outright “collapse.”
David Jones has been contacted for comment. Its next steps include continuing talks with landlords as the retailer seeks to reshape its store network.
