'Obsolete and redundant': What went wrong for David Jones?

One industry expert says the downfall of David Jones is the sign of a bigger problem impacting the retail sector. 

The Australian department store has officially gone into voluntary administration, following failed discussions between the 188 year old company and its landlord Scentre Group.

Australian consumer and retail analyst Barry Urquhart says all department stores around the world are struggling - including Saks Fifth Avenue.

"This is not so much an issue of retail competitiveness, advertising and marketing, it's a simple case of undercapitalisation."

LISTEN ABOVE

• 'Writing's been on the wall': Retailer David Jones placed into voluntary administration
• David Jones enters administration and receivership