David Jones has turned to computer giant IBM to help it build a better web presence to revive lacklustre internet sales
IBM won the contract, for an undisclosed amount, to develop and integrate David Jones' web design, online application development, social media, promotions, analytics and reporting.
It will also provide back-end capabilities for order and inventory management and sales fulfillment.
The announcement comes five months after the upmarket retail chain revealed less than 0.2 per cent of its sales, or $3 million, were made through its shopping website in its fiscal 2011.
"IBM will develop an end-to-end multi-channel e-commerce platform for David Jones that will enable it to provide customers with a seamless customer experience across its physical stores, its online stores and mobile devices," IBM said in a statement on Friday.
David Jones chief executive Paul Zahra said IBM had successfully implemented online retailing models for major international department stores.
David Jones' investment in technology and information systems will be funded from its $80 million capital expenditure budget and further details will be provided in a market update.
IBM said David Jones would be the first major Australian retailer to provide customers with a true cross-channel shopping experience.
"Customers will not only have the ability to browse and buy, but also pick-up and return items through the channel of their choice, including their mobile phones, online or at a physical store," IBM said.
Rival retailer Myer is expected to spend $9 million upgrading its online presence by April this year.
Retail analysts recently said David Jones had been fortunate that no major dominant online retailer had emerged in Australia.
Last month David Jones cast aside a difficult Christmas trading season to announce the opening of a new store in a high-growth area of Brisbane.
David Jones is expected to report a fall in second quarter sales later this month after an 11 per cent fall in the first quarter.
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