Department store giant David Jones is the latest retailer to call out falling consumer confidence as a reason for a decline sales.
Woolworths Holdings, the South African retailer that has owned the Australian department store chain for three years, says David Jones' comparable sales fell 0.7 per cent in the year to June 25.
It is the first time full-year sales have dropped under the new owner after sales slowed down in the second half.
Rival department store chain Myer warned in May that "challenging trading conditions" will continue to hurt its sales after it reported a 3.3 per cent fall in its third quarter sales with comparable sales down two per cent.
This is set against a backdrop of high-end retailers collapsing into administration, including Top Shop, Herringbone, Marcs and David Lawrence, Pumpkin Patch, and Rhodes and Beckett.
David Jones' overall sales increased one per cent in Australian dollar terms, but the collapse of Dick Smith electronics concession stores last year dented growth by about one per cent.
"Whilst relevant market share has grown, sales growth slowed in the second half (at DJs), as falling consumer confidence resulted in lower footfall," the company said in a trading update on Friday.
Woolworths Holdings' other Aussie retail business, the Country Road Group, suffered a 0.4 per cent drop in like-for-like sales while overall sales rose 5.1 per cent, in Australian dollar terms.
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