Brand exclusivity is crucial

THE official launch of the autumn fashion range is two months away for Myer and David Jones but they have already kicked off a fight over brands and the battle for exclusive rights to top designers.

Myer was first to claim bragging rights this month after poaching womenswear and menswear designer Arthur Galan and Australian fashion label Simona from David Jones.

David Jones announced yesterday that it had secured exclusive rights to 12 Australian and international designers and 18 fashion and beauty brands, including Italian fashion house Pucci, French luxury brand Balmain, the Versace collection, MinkPink and Witchery Man.

Brand exclusivity is crucial to Myer and David Jones because having sole access to branded clothes, footwear and cosmetic labels in their stores prevents them being undercut on price. The two department store chains often sit side by side in shopping centres and, though they often match prices offered on similar products, their margins on exclusive brands can remain intact.

Nearly 60 per cent of David Jones's brand portfolio consists of exclusive labels while Myer has been reworking its flagship store in the Bourke Street Mall where it can show off its exclusive labels.

David Jones's general manager of fashion and beauty, Sacha Laing, said yesterday that winning the new 30 exclusive brands had taken months.

He denied that David Jones had ''lost'' Arthur Galan, and while not commenting on that label, said brands would often leave David Jones as they did not meet sales performance benchmarks. David Jones insists it ''let go'' of Simona.

Myer is claiming the move by Arthur Galan as a big coup.

A Myer spokeswoman said Arthur Galan's womenswear business in David Jones was up 22.7 per cent in the year to date, and menswear was up 7 per cent in a tough period.

For the first quarter of 2010-11, David Jones reported total and like-for-like sales of $466.6 million, up 3.2 per cent. For the same period, Myer had sales of $706 million, down 1.53 per cent, or 1.76 per cent on a like-for-like basis.