By Anhar Khanbhai

David Jones has had a tumultuous week after announcing a 20% decline in profits and then warning net profit would fall by up to 40% this financial year.

Top boss Paul Zahra on Wednesday outlined a range of strategies to boost declining sales including a much needed push into online retailing and an increase in staff numbers to improve customer services, but investors and analysts have deemed these strategies as too little, too late.

Simon Marais, managing director at David Jones shareholder Orbis Investment Management told The Australian that many of the company's plans should already have been executed.

"Things are tough, and I think they've left it quite late -- they've got a reasonably hard slog ahead of them," Marais said.

Under-investment by previous management

Zahra has blamed the delay on the circumstances of his appointment to chief executive in June 2010, when he was suddenly thrust into the role after Mark McInnes quit in the wake of a sexual harassment complaint from a female staff member. Zahra has also blamed under-investment in online retailing under previous management for its current poor performance.

"That's the single biggest impact on our business because consumers have changed the way they shopped and how they interact with department stores, and as we have been laggards we're playing furious catch-up," he said.

"Did I expect to have the two years I've had? Absolutely not . . . but there was no transition -- Mark left on the Friday and I started on the Monday. It's not one step up, it was five."

But Marais said Zahra should not blame previous management for decisions as he, as general manager of stores and operations oversaw the staff reductions the company is now partially reversing with 300 new specialist sales appointments.

He also noted the company's plans to boost its presence in online retailing were aimed not at growing sales but merely slowing their rate of decline.

Can't match online competitors

"If this company was all about online they'd get slaughtered. You don't go to David Jones because you want to buy online but because you want something specific, and if it's cheaper online then they haven't got a hope in hell because they can never match the cost structures of a cheap internet retailer."

Zahra said the company had grown its online retail presence, by launching a mobile site in September 2011 and a dedicated Brand Finder.

David Jones now wants to implement a competent warehouse management system starting with a web-store early next year.

Zara said the site will offer “enhanced functionality such as customer reviews and ratings, additional carrier options and additional payment plans” to “ensure that David Jones’ online is competitive from both a local and international perspective”.