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Introduction
The overarching focus of this article is the quest for understanding retail longevity with application to the Australian department store industry. Given the critical role of retail innovation in facilitating retail longevity, the long-standing David Jones department store in Sydney provides an ideal case study into these processes. To this end, the nature of retail innovation in department stores in Australia in 1870-1915 suggests that this was an important formative period of department store development.
To position the research, we then briefly cover retailing literature, following in more detail with Australasian department store history and then transnational influences on Australasian department store development. Our research question focuses on marketing contributions through retail innovation to retail longevity. In particular, the study focuses on two major complex innovations in one of Australia’s leading department stores, David Jones Ltd. (hereinafter David Jones). Complex innovations have both creative and innovative components, but they must also take into account subsequent marketing and operational considerations to fully utilize the innovation.
The subsequent sections comprise research design, findings from the first complex innovation (the 1887 store), implications of the first innovation, findings from the second complex innovation (in fact a suite of minor innovations including developing a market for homemade clothing) and implications of that suite of innovations. Next, the paper draws on two innovations to form an historical perspective on David Jones innovations in its formative period, followed by an evaluation of the role of transnational influences on retail innovation in David Jones.
Retail innovation
Retailers have a long tradition of innovation across most aspects of marketing, including large-scale merchandising; the role of advertising as a key sales driver; the role of displays; new distribution channels, including mail order; sales techniques; and technology (Jeacle, 2004; Tamilia, 2011; Tamilia and Reid, 2007). In many cases, retailers have been market-driving and not merely market-driven (Kumar, 1997; Miller and Merrilees, 2004). Wanamaker was well known for his advertising innovations (Applegate, 2001). The Canadian department store T. Eaton was particularly active with retail and marketing innovations over the 1880-1907 period (Santink, 1990). Innovations in selling techniques are documented in New Zealand department stores; for example, The Farmers’ department store, in its 1931 sales force training, advocated selling effects, not things: “Don’t sell shoes –...