David Jones is losing brands. The retailer is under scrutiny, but are the brand economics receiving the same attention?

Country Road Group plans to remove nearly 100 of its 283 concessions from David Jones, following pullbacks by Dior, Gucci, Chanel and RM Williams. Inside Retail reported that Country Road Group generated about A$1.07 billion in revenue but only A$2.3 million in adjusted EBIT in FY26, a margin of about 0.2%.

Those figures do not prove that every concession is unprofitable or explain the reason for each brand exit. They do put the economics of each route to market into sharper focus. A concession should be assessed on its own sales, margin, staffing costs, stock requirements and role in bringing customers to the brand.

Strong operations matter here. The retailer and brand should review space productivity, stock availability, staffing and the customer handover, then agree who owns each issue. If they only review total sales, a weak location and a weak range can look like the same problem. The numbers need enough detail to show where value is being lost.

The department store has a separate question to answer. Customers need a reason to shop for that brand there. A long list of labels is not enough if the range is hard to navigate, the product is unavailable, or the service gives the customer no reason to stay. The brand's own store offers more control over presentation and the customer relationship. A department store can offer discovery, reach and convenience. Each side has to show that those advantages are delivering a return.

When a concession underperforms, which party should have to show the numbers first: the department store or the brand?

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