‘How dare you?’ What you shouldn’t say to David Jones’ first female CEO

David Jones’ future is long and bright – or, at least, that’s what you’ll be told by Erica Berchtold, the first female boss to take the reins of the beleaguered department store in its 188-year history.

Just ask the two gentlemen sitting beside her on the plane on Sunday, who quickly learnt after daring to suggest they’d heard the business wasn’t doing too well.

“How dare you? Wash your mouth out,” Berchtold said she told the men. “I’m here to tell you David Jones is not going anywhere. The only place David Jones is going is up.”

Berchtold steps into the top job at a critical time for the retailer, which is fighting to increase foot traffic and sales as more customers do their shopping online or take their money elsewhere. All around the world, department stores are fighting against declining relevance: in the US and the UK alone, Sears, Barneys New York, Debenhams and British Home Stores have collapsed.

“I think we do a good job, [but] I think we could do a great job,” Berchtold said. “This is the world’s oldest department store. It’s time for a little refresh and a bit of modernising, and that’s what we’ll be doing.”

Berchtold joined the business a year ago as chief commercial officer, and has spent the past 12 months reassessing David Jones’ merchandise, mix of products and supply chain. The former chief executive of The Iconic said the plan was always for her to eventually succeed chief executive Scott Fyfe, a Scot who led David Jones for nearly six years.

“The only thing up for question was really the timing of that,” she said. “I bring with me a new energy and new pace to take the baton from Scott and run forward with that. I’m hugely excited by it.”

David Jones has struggled for years to make money. Last year, it booked $95 million in losses, up from $74.1 million in losses the year prior. In recent months, it pushed suppliers towards longer payment terms, which can put their own finances in a precarious position. Some suppliers have broken their exclusive contracts and taken their business to arch rival Myer.

Before joining David Jones last year, Berchtold spent a year trying to save Mosaic Brands, the company behind low-budget brands such as Rivers, Millers, Katies and Noni B, which left a string of suppliers out of pocket when it collapsed in October 2024.

Berchtold’s appointment coincides with the end of a five-year strategic plan for the company and the signing of a new three-year loan with Hilco, which specialises in restructuring and lending to underperforming businesses, replacing its arrangement with investment firm Gordon Brothers. The new lender will give the business “flexibility to continue the reset” and renegotiate terms with suppliers, said Berchtold.

“Yes, we have some issues, and I’m not going to get drawn into discussing those,” she said. “I see a way through those. We need to do things differently, modernise our business, adjust our approach to our strategic plan, give clarity to our teams.

“One thing I will really say is every supplier I talk to just loves David Jones,” she went on. “They want to see a strong, thriving David Jones, and that is our intention.”

Berchtold’s elevation to CEO means Australia’s two leading department stores are run by women. Myer chief executive Olivia Wirth is also focused on stepping up beauty services, bringing in trendier brands and attracting younger customers.

In the past year, David Jones has tried to lure customers with a new loyalty program with Qantas and a revamped food hall in its flagship Sydney store. The food hall has disappointed some customers.

Watch this space, said Berchtold: the oyster bar, once a mainstay of the famous hall, will make a return, and the deli will return, she flagged.

“It’s still a work in progress,” she said. “The food hall [of] the 1970s is not the food hall we’re going to do today … We will have a modern take on what a food hall should be.”

In a company statement, Fyfe said he and the board had reached the decision for him to leave through mutual agreement.

“It has been an honour to lead the business through some of the most challenging times, starting in COVID,” he said.

Anchorage Capital Partners said it was fully appreciative of Fyfe’s efforts and wished him the best for the future.

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