David Jones Closing Castle Towers & Tuggerah: The End of an Era or a Smart Pivot?

It’s the end of an era for shoppers in The Hills and on the Central Coast. After months of speculation, David Jones has confirmed it will permanently close its Castle Towers and Tuggerah department stores in January 2026.

For over 30 years, these stores have been anchors of their respective shopping centres. But as the retail landscape shifts under our feet, the days of having a "DJs" in every major suburban mall appear to be numbered. While this feels like a blow to locals losing their premium "local," these closures are not signs of a collapse. Instead, they are calculated moves in a high-stakes chess game played by the retailer's private equity owners, Anchorage Capital Partners, under their aggressive Vision 2025+ strategy.

Here is everything you need to know about the closures, the dates, and why the "Grand Old Dame" of Australian retail is shrinking its footprint to survive.

The Details: When are the Doors Shutting?

If you are holding onto gift cards or planning a final browse, mark these dates in your calendar. David Jones has confirmed the following closure schedule:

David Jones Tuggerah (Central Coast): Closing January 11, 2026.
David Jones Castle Towers (The Hills): Closing January 19, 2026.

The timing is strategic, allowing the retailer to trade through the busy Christmas and Boxing Day sales period before exiting. For loyal shoppers, the brand is directing traffic to nearby "hub" stores. Castle Hill customers are being pointed toward the newly refurbished Chatswood Chase flagship, Macquarie Centre, or Hornsby. Central Coast locals are being nudged toward Kotara (Newcastle) or Stockland Green Hills.

The human cost, however, is significant. While David Jones has stated they are "committed to supporting our team" and will attempt to identify redeployment opportunities, the reality of geography makes this difficult for many. This follows a controversial redundancy process during the Burwood store downsizing in 2024, which the Fair Work Commission criticised as being "far from ideal" and relying on subjective skills assessments.

"Dingy" and "Overpriced": What Shoppers are Saying

While the closures are officially labeled as "network optimisation," the reaction from locals suggests the writing has been on the wall for some time. Social media sentiment paints a picture of stores that had lost their sparkle.

In local forums, shoppers have described the Castle Towers location as "dingy," citing low ceilings, lack of natural light, and a tired interior that hadn't seen a major refresh in decades.

Then there is the price factor. The demographics of The Hills District have shifted. As cost-of-living pressures bite, younger families facing high mortgages are less likely to drop $100 on a kids' t-shirt at a department store when competitive options are available nearby. As one Reddit user noted, the store often felt "empty" with "more staff than customers" outside of sale periods.

The Landlord Dispute: It’s Not Just About Sales

The David Jones Castle Towers closing isn't solely about the retailer wanting to leave; it’s also about the landlord wanting something different.

The centre is owned by QIC (Queensland Investment Corporation), which is currently undertaking a massive master plan to transform Castle Towers into a "Village" precinct. Reports indicate that QIC chose not to renew the lease on favourable terms, preferring to break up the massive multi-story footprint into a "designer mall".

This space is expected to be redeveloped to house approximately 30 boutique retailers, potentially including high-yield tenants like JD Sports or Mecca Maxima. For landlords, smaller boutiques often pay significantly higher rent per square meter than legacy department stores, making the "anchor tenant" model less financially attractive than it was in the 1990s.

Vision 2025+: The Strategy Behind the Closures

To understand why David Jones is shrinking, you have to look at who owns them. Anchorage Capital Partners bought the retailer from Woolworths Holdings (South Africa) in 2023 for a bargain price of approximately $100 million. Private equity firms are renowned for stripping away fat to "unlock value," and that is exactly what is happening here.

1. Data Over Real Estate Anchorage didn't just buy a retailer; they bought a data platform. The new strategy treats David Jones as a media company first. Through their "Amplify" retail media network, they are monetising their 5 million+ affluent customers by selling ad space to brands like Netflix, Stan, and Range Rover. They don't need 40 stores to do this; they need rich data from their highest-spending customers.

2. Flagship Focus The money saved from closing regional stores like Tuggerah and Eastland (which closed in 2024) is being funneled into massive refurbishments of CBD flagships. The vision is to create world-class "destinations" in places like Elizabeth Street, Bourke Street, and the new Chatswood Chase concept store, which feature luxury treatment rooms and exclusive brand partnerships.

Is David Jones Still Viable? (The Financial Reality)

With headlines about closures and losses, it's natural to ask: Is David Jones going under?

The short answer is no, but they are under pressure. In the FY24 financial year, David Jones reported a $74 million statutory loss, largely driven by rising finance costs and debt servicing, which doubled to over $150 million.

However, the core business is actually operating cash-flow positive ($49.5 million in FY24). Sales have stabilised at around $2.19 billion. The pivot is to shift away from low-margin retail towards high-margin services:

Retail Media: Selling access to their wealthy customer database.
Loyalty: The massive overhaul partnering with Qantas Frequent Flyer, allowing shoppers to "earn and burn" points, creating a sticky ecosystem that rivals Myer One.

Conclusion

The closure of David Jones at Castle Towers and Tuggerah marks the end of the "department store in every suburb" era. Under Anchorage Capital, the brand is shedding its mass-market skin to emerge as a leaner, data-driven luxury curator. For shoppers in The Hills and the Central Coast, the inconvenience is real, but for David Jones, this "right-sizing" is the only path to survival in 2026.

What do you think? Will you travel to Chatswood or Hornsby, or is this the end of your relationship with DJs? Let us know in the comments.

FAQ

Q: Why is David Jones closing at Castle Towers? A: The closure is part of a "network optimisation" strategy and follows a decision by the landlord, QIC, to redevelop the space into a precinct for boutique retailers rather than renew the department store lease.

Q: Will David Jones staff lose their jobs? A: David Jones has stated they aim to redeploy staff to nearby stores (like Hornsby or Macquarie), but redundancies are likely where redeployment isn't geographically feasible, particularly for Central Coast staff.

Q: Can I still use my David Jones gift cards? A: Yes. Gift cards remain valid for use online at davidjones.com and at all remaining 38+ stores across Australia and New Zealand.

Q: Is David Jones going bankrupt? A: No. While they reported a statutory loss in FY24 due to high finance costs, the company is cash-flow positive and backed by private equity firm Anchorage Capital, which is investing $250 million into technology and store upgrades.