id explore a joint venture with Just Jeans in 1997 that would have involved the Australian jeans retailer opening and running stores, but the two companies failed to reach an agreement, and the only outcome was the sale of a modest range of Marks & Spencer denim products in Just Jeans outlets. Marks & Spencer has 434 stores and 39 online platforms globally and despite, or perhaps because of, attempts by rival department stores in the UK to establish a foothold in Australia, it has not made any further foray down under until now, apart from a local website launched in September 2021. The renowned retailer no doubt was hamstrung by some challenging retail conditions affecting its global store network and, critically, its core business in the UK in recent years. Failures in Australian expansion The attempts by Debenhams and John Lewis hardly inspired confidence, with selected ranges in Harris Scarfe and Myer, respectively, both failing. In fact, the launch of a Debenhams-branded department store at St Collins Lane, a prime Melbourne shopping strip, and a curated product range through Harris Scarfe’s established store network, failed to attract customer interest. Greenlit Brands, which owned Harris Scarfe and had an agreement to develop up to 10 Debenham stores, offloaded its interest to a private equity firm, which promptly put Harris Scarfe into administration in 2020 after closing the only trading Debenham store the previous year. The lease break costs were a key factor in the Harris Scarfe collapse before a rescue buyout by the Spotlight Group. The Marks & Spencer deal with David Jones is part of the company’s broader strategy to expand its international bricks-and-mortar and online presence. Despite its previous failures to establish its brand in Australia, Marks & Spencer management believe it is an attractive market with high per-capita clothing consumption and a free trade agreement that offers tariff benefits and easy market access. The David Jones partnership follows new leadership for the British retailer and a reset of strategies and priorities for Marks & Spencer’s international business to provide stronger foundations for long-term growth. The retailer’s renewed interest in Australia is premised on a belief it is well positioned as a value-for-money retailer and leading own-label business that has had online exposure in Australia for a tailored and tested range of products, including food, clothing and home goods, since 2021. Perfect partner – David Jones David Jones will offer a selection of Marks & Spencer’s bestselling womenswear, menswear and lingerie in-store and online, with the range expanding beyond the July lingerie and sleepwear ranges in the lead-up to Christmas and summer. Mark Lemming, managing director of Marks & Spencer’s international retail division, said David Jones is the perfect partner as the UK retailer takes its first venture into a wholesale partnership in fashion. Lemming said the partnership continues to “drive style and lead the UK market in quality and value perceptions as part of an ambition to build a global omnichannel business, utilizing the expertise and infrastructure of strategic franchise partners in established markets”. Bridget Veals, executive general manager of womenswear at David Jones, contends the arrival of Marks & Spencer is the beginning of an exciting new chapter for the Australian retailer. Veals said the exclusive partnership is consistent with David Jones’ strategy to curate a world-class portfolio of brands that deliver both elevated everyday essentials and exceptional value. While both parties are confidently looking forward to a successful long-term relationship, the deal raises some interesting questions about what is being done to overcome the problems that three leading UK department store brands (including, previously, Marks & Spencer) have had in attempting to establish themselves in Australia. The muted Myer effort to promote the partnership it struck with John Lewis in 2016 was possibly due, in part, to the UK retailer seeing the deal as a test for its brand, with a view to a competitive entry to the market against Myer. The John Lewis homewares range itself was hardly distinctive or exciting and certainly provided no compelling offer for Myer, which, at the time, was struggling for sales and momentum. The failure of Debenhams was more complex, with a range of issues and limited exposure for its flagship store in the St Collins Lane center, as well as financial constraints on Greenlit Brands and Debenhams in the hands of administrators from April 2019. The onset of the Covid-19 pandemic in 2020 was the lethal blow for the Debenhams venture with Harris Scarfe. Mismatches lead to misfires Marks & Spencer’s previous misfires were no doubt aligned to its product range, marketing, competitive squeeze and locations, given its UK business heritage was fundamentally “main street”, and the fact there were fit and execution strategy differences with Just Group. Those differences potentially loom large again this time around. Lemming describes David Jones as Australia’s “premium department store”, so how does that fit with Marks & Spencer’s market positioning with an own-brand offer and middle market value for money retailer? Is David Jones, under its latest ownership, headed down market – a move that has damaged its brand, sales and earnings in recent years, especially with fashion brands introduced from South Africa? David Jones is probably desperately searching for a point of difference with an international retail brand, given the departures and financial failures of high-profile Australian designers and specialty fashion brands. However, the partnership could well confuse and damage David Jones’ brand perception, after all, Marks & Spencer would seem to be a better fit with where Myer has been hovering in recent years. Seasonality of apparel products, different socio-demographics, supply chain issues, product range selection, the marketing challenge of value versus upmarket positioning, and selected availability of Marks & Spencer products across David Jones store locations could all cause serious tensions in the partnership. Australia appears to be a good potential market for Marks & Spencer, but the retailer and David Jones will have to rewrite the history of England and its far-flung southern hemisphere dominion. Further reading: Asos’ NYC pop-up is just the beginning of its US expansion strategy