Following the David Jones Spring/Summer Fashion Launch this week, David Jones have announced plans to move its corporate headquarters from Sydney to Melbourne.
South African retailer Woolworths, who acquired the company back in 2014 for $2.1 billion, will make the move early next year, freeing up space in its Elizabeth Store.
The space is required due to the “imminent" sale of the Market Street store.
The move is expected to have a huge impact on both the company and the economy in both Sydney and Melbourne, with hundreds expected to lose their jobs due to the relocation, reports The Financial Review.
"This exercise is not about reducing headcount and saving employment costs. Not only will the current complement of David Jones staff remain the same, it will grow in future as the business expands,"’ Woolworths Holdings chief executive, Ian Moir, tells The Australian.
Employees will reportedly be offered to relocate with the company, but it is expected as many as 50% will opt not to.
Woolworth also acquired Country Road during in 2014 and they are also expected to make the move and merge their head office and supply chain with David Jones within the next two years.
Victorian Premier Daniel Andrews tells The Australian this is "testament" to his cities position as the nation’s "fashion capital".
"[Victoria] is one of the best places in the world to do business. We are fighting for every single job and bringing in major investments like this one, which will secure 1500 jobs for Victoria and help keep our economy strong."
Since taking over the company in 2014, Woolworths have made major changes in the areas of service, staffing, accounting and merchandising, resulting in an 8 per cent rise in sales in the past 12 months.