End of the Zahra era for DJs

David Jones boss Paul Zahra has stepped down after a turbulent four years at the helm of the department store business.

Country Road store.

Country Road boss Ian Nairn will take on the top job at department store chain David Jones. (AAP)

First he was leaving, then he wasn't, now he has.

David Jones chief executive Paul Zahra has stepped down less than two weeks after South African retailer Woolworths Holdings took control of David Jones with a $2.2 billion takeover.

It was a fittingly turbulent end for Mr Zahra, who was catapulted to the top job at David Jones after a sexual harassment scandal claimed his predecessor, and has led the store through one of the more difficult periods in its long history.

He'd previously announced his intention to resign in October 2013, saying he needed a break, though others attributed the move to an internal struggle with then chairman Peter Mason.

In the end it was Mr Mason who left, in the wake of an insider trading scandal that also claimed two of the company's directors.

Mr Zahra stayed on, saying he'd never actually resigned anyway.

He'd since given indications, as recently as July, that he intended to remain in the role under Woolworths.

Still, Woolworths chief executive Ian Moir insists he wasn't pushed.

"He was not pushed, he chose to leave, it was his decision," Mr Moir told reporters.

"I think he did it because he's built the platform, he's created I think a really good story and a really good positioning for David Jones."

Mr Zahra has been replaced by Iain Nairn, who has headed the Woolworths' owned Country Road for the past two years.

Mr Nairn said he was looking forward to doing his job free of the public attention that had followed his predecessors.

"Hopefully, we won't be out there in the limelight in the same way that it as been for the last couple of years," he said.

Analyst Peter Esho, managing partner at 100 Doors, said it wasn't surprising Woolworths would want to replace Mr Zahra with their own appointment.

"When you take ownership of an asset you want to impose your way of doing business and your investment ideology, and at the end of the day the CEO is the most important person in doing that," he said.

Mr Zahra was plucked out of relative obscurity to lead David Jones, after a very public sexual harassment scandal forced the resignation of Mark McInnes.

The 48-year-old presided over a difficult four years for David Jones, as falling consumer spending hit sales and profit, though the company appeared to have turned a corner with a lift in sales during the first half of the 2013/14 financial year.

Mr Zahra said he has no immediate plans, other than a holiday, after which he will make a decision about his future.

"The past four years have been a time of great challenge and reward," he said.


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