Department store innovation: David Jones Ltd., Australia, 1876-1915

Abstract

Purpose:

The purpose of this paper is to investigate the historical contributions of complex innovations (both creative and tactical components) in a formative period in a major Australian department store, David Jones Ltd.

Design/methodology/approach:

The study uses a context-specific lens to examine complex retail innovation. The study adopts a longitudinal design with the focus on a single firm, which met the inclusion criteria. Data collection was predominately from company archival materials and publicly available documents, including newspapers.

Findings:

An in-depth analysis of two complex innovations demonstrates the retailer’s successful management of both marketing exploration (innovation) and marketing exploitation of that innovation. Effective marketing requires operational, tactical marketing exploitation to dovetail marketing exploration.

Research limitations/implications:

The study is limited to one successful department store. Notwithstanding, there are expectations that the lessons extend to many other retailing organizations.

Practical implications:

The practical relevance is clear, with the emphasis on retail innovation (and especially complex innovation) as a basis for both surviving and thriving in an ever-changing marketing environment.

Originality/value:

The use of a complex innovation approach is a novel way of examining marketing history. The study concludes that both marketing exploration and marketing exploitation are essential for retail longevity.