Former Dynamic Business Magazine cover star Ruslan Kogan has slammed traditional bricks and mortar retailers for failing to innovate in the face of a changing marketplace.
Direct Factory Outlet’s South Wharf development in Melbourne’s Docklands precinct was to be the crown in the group’s ten shopping centres, departing from DFO’s traditional factory and clearance outlets for mainstream brands model that had underpinned DFO’s model previously, the South Wharf DFO aimed higher, seeking to attract more prestigious brands and ‘upmarket’ retail and fashion outlets.
“Today’s collapse of supposed ‘direct’ bricks and mortar retailer DFO shows that traditional retailers which fail to innovate are doomed to fail.”Kogan said.
Austexx, who owns DFO is believed to owe $400 million over the failed DFO South Wharf development with banks concerned about their loans given the highly leveraged state of the DFO group.
“Some archaic businesses are slowly realising that they can’t operate like they did twenty years ago and still survive. We saw this last week when Bing Lee finally launched an online store.
“When Clive Peeters collapsed I said you would start seeing more and more bricks and mortar retailers falling into receivership. DFO’s demise is just the tip of the iceberg.
“Gerry Harvey and I exchanged words about this last week on Today Tonight, and you can see my direct challenge to him for a live debate on the state of the industry on our website: http://bit.ly/harveyvskogan”
“I am surprised the ACCC never called DFO up on using the term ‘direct’. I think it may have been misleading and deceptive conduct. It is clear that customers can decide on their own accord what is direct and what isn’t. The only real direct businesses out there are online,” Ruslan Kogan said.
