IBM Partners with David Jones to Provide Total E-Commerce Solution

David Jones’ e-commerce offering has been doing even worse than its bricks-and-mortar business, but IBM wants to change all that.

David Jones, suffering from dwindling sales and the huge overheads associated with maintaining multiple department stores, has been frantically searching for a life raft. Following on from the closure of its large Newcastle store and an underperforming e-commerce site, the brand has now turned to IBM‘s ‘Smarter Commerce’ solution for help.

IBM has struck a deal with David Jones (for an undisclosed amount) in order to develop and integrate the brand’s web design, online application development, social media, analytics and reporting. It will also provide back-end capabilities for orders, inventory management and sales fulfilment. That is to say: IBM will now provide a holistic online retail solution for the shopping giant. This investment into its e-commerce channel will be funded by David Jones’ $80M capital expenditure budget.

“IBM will develop an end-to-end multi-channel e-commerce platform for David Jones that will enable it to provide customers with a seamless customer experience across its physical stores, its online stores and mobile devices,” says Ian Wong, Associate Partner for IBM Global Business Services,

This is expected to be a positive change for David Jones, as its online store was found to bring in just 0.2% of its overall sales in its fiscal 2011.

“A recent study by IBM, which looked at consumer expectations of retailers, showed that more than 78% of Australian consumers expect to be able to use technology as a fundamental part of their shopping experience,” says Wong.

“The cross-channel platform is therefore a bold new step by David Jones to meet and surpass the demands of the ‘empowered consumer’,” he says.

The timing of the partnership could not have been better, as analysts have recently commented that David Jones is fortunate that no major dominant online retailer has yet emerged in Australia. With IBM’s assistance, David Jones may now be able to solidify a position in the online market by providing a true cross-channel shopping experience.

“Customers will not only have the ability to browse and buy, but also pick-up and return items through the channel of their choice, including their mobile phones, online or at a physical store,” says Wong.

If IBM is able to reinvigorate David Jones’ online offering soon enough, it will not only be a coup for the well-known retail brand, but it will also be the most significant change to the Australian online retail landscape in 2012 thus far.


3 thoughts on “IBM Partners with David Jones to Provide Total E-Commerce Solution”

  1. Kate Morris says:

    Good luck DJs. From what I’ve heard about IBM ecommerce implementations, they’re going to need it.

  2. Mike Nielson says:

    What a bunch of idiots, this is doomed to fail. Go lean, offer better prices, embrace the social web and learn some basic SEO techniques. Any off the shelf solution would be better then this crap. Can’t wait to watch this giant come tumbling down for failing to embrace change a long time ago.

  3. Head of Digital Marketing Person says:

    I am sorry to say this but this high spending strategy is designed to fail.

    Who is IBM to you? Can they bring you more sales? They are system designer but marketer.

    DJ, you are going to spend all these money to make it look good but you will fail to attract potential buyers. It is not the web functions to drive you more customers , think about what can you do to attract your customers to buy from you.

    You need to have an edge with better price, better customer service, better marketing and good features. e.g. 3d virtual fitting ,etc.

    Otherwise this is nothing special and good luck with your 80 million spending.

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