David Jones latest fashion for staff

Shopper Krystina Beche outside David Jones and Zara fashion stores in Bourke Street, Melbourne. Picture: Stuart McEvoy 

AFTER years of cutting staff numbers to the point where shoppers could barely find anyone to take their cash, department store David Jones is hiring more salespeople in an attempt to turn around its plummeting sales.

DJs chief Paul Zahra said yesterday the company would hire another 300 specialist retail staff across its 36-store portfolio to boost service levels after warning that net profit would fall by up to 40 per cent this financial year.

The company has steadily reduced staff numbers since 2009 to reduce costs and maintain profitability in the face of flagging sales.

However, the strategy became self-defeating as frustrated shoppers increasingly avoided the stores on the grounds of poor service. As part of a turnaround strategy unveiled yesterday, DJs would increase the hours of existing employees as well as hiring 200 specially trained service staff and another 100 floor supervisors to boost service levels for customers.

Mr Zahra said recruitment would begin next week, with the new staff to start work by the end of July. Floor staff will also have an incentive to help shoppers, with a new bonus payment program based on sales performance.

The move follows a similar strategy by rival department store Myer, which has spent an additional $13 million in wages over the first half of the financial year to boost staffing levels.

Shoppers outside David Jones' flagship store in central Melbourne yesterday said they were fed up with the poor service at the major department stores.

Krystina Beche, a tailor and stylist, said she found shopping at DJs more difficult than at smaller specialised stores. "It's not a big thing, but for me it's the change rooms; I can never find them in David Jones," she said. "It's a hassle just finding anything because everything changes all the time and you don't know where your favourite brands are."

Charmian Bolger, a 24-year-old nurse, said she also preferred the service and the layout in specialty stores. "It's quite difficult to find staff in department stores sometimes," she said.

Demand for customer service has helped high-end retailers such as jewellery chain Tiffany & Co and upmarket menswear boutique Harrolds report growth in sales despite the overall downturn in discretionary spending, while Virgin Australia plans to capitalise on the trend with a network of super-premium lounges at major airports to lure well-heeled passengers.