David Jones blames poor sales as fashion alliance with Alex Perry unravels
What began as a fashion marriage made in monochrome heaven is ending in a designer divorce.
When Alex Perry joined David Jones in 2007, the high-profile designer closed the department store's fashion show with a black and white houndstooth gown that left no doubt he was a DJs man after defecting from rival department store Myer.
But - six years later - David Jones is ditching Perry due to poor sales, just months after Perry sat in the front row at Myer's fashion collections launch in August.
''Our decision not to renew our contract with Alex Perry when it expires is based on the declining sales of this brand over the past few years,'' said Donna Player, group executive of merchandise at David Jones.
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On Friday, David Jones sent a letter to Perry advising him it would be deleting his brand from August next year, when the existing contract expired.
David Jones claims Perry's sales at the department store have dropped by 10.3 per cent over the past three financial years, as DJs' overall Australian designer sales have increased by more than 27 per cent.
Perry's sales last year were much less than the $4 million to $5 million generated each year by other Australian designers in the David Jones stable, with some brands turning over close to $10 million.
''Whilst we wish Alex Perry all the best, we are a publicly listed company and we have a responsibility to our shareholders to … delete non-performing brands and reallocate the space to new brands and high-performing brands,'' Ms Player said.
Some industry insiders believe Perry lost touch with his core fashion business due to a hectic roster of television appearances and other projects, including roles on the television shows Australia's Next Top Model and Project Runway, designing a sunglasses and opticals range for Specsavers and serving as ''creative director'' for a range of Alex Perry Residential apartment buildings in Brisbane.
Perry is also an Electrolux ambassador, a MasterCard ambassador for the tennis in Melbourne and has created a range for Magnolia Silver Jewellery.
David Jones attempted to help Perry expand his fashion business by supporting the designer's diversification into corporate wear last year but the line failed to take off.
Matters came to a head after Perry's appearance at the Myer collections launch, after which he approached David Jones about the terms he wanted in order to renew his supply contract with the department store. The negotiations were not successful.
Perry said on Friday that he had not heard from David Jones until that day, having sent the department store a letter in September requesting new terms for his contracts.
''It's taken them three months to respond to my letter and there are some serious [issues] that I wanted to address, so to hear the news from you is delightful,'' Perry told Fairfax Media on Friday.
When asked if he was jumping ship to Myer, Perry said: ''I can't answer that right now. I've got several options but David Jones is not the best place for me in terms of my brand any more.''
Perry said the department store had failed to support a new, more youthful direction for his brand, which had recently picked up 40 new stockists in Europe.
''We've had unprecedented growth when other brands have been going under but David Jones didn't embrace the younger market I began pursuing last season,'' he said.
The exit of Perry will enable David Jones to reallocate his floor space to Australian designer Martin Grant, who lives in Paris and has just been signed by the department store, as well as two high-performing brands, Rachel Gilbert and Camilla World.