As part of the new project, Stockland will more than double the size of the centre and will include a new David Jones department store that will showcase a new, smaller format of about 6225 square metres on a single level.

David Jones chief operating officer David Thomas said it was on a "mission to bring world-class, premium retail to Australia".

"Our new store at Stockland Green Hills will showcase our considerable investment, not only in the look and feel of our store, but in training local full-time and part-time customer service staff who will be so crucial to our efforts to win customers in regional Australia," Mr Thomas said.

The smaller stores are the new way for David Jones, which is now owned by the South African Woolworths group.

In August, David Jones revealed plans to open a 1400-square-metre boutique store in Sydney's Barangaroo, the first of up to 10 small-format stores that will sell mainly clothing, cosmetics and accessories.

The group has also said it plans to sell two of David Jones' four company-owned stores – Market Street in Sydney and Bourke Street in Melbourne – raising more than $300 million to fund refurbishments and expansion.

It is said the owners are already fielding calls from overseas investors and Australian super funds for the Sydney site, which could be transformed into an apartment block, with retail on the ground level. Upmarket label Hermes is said to be looking at the store as a potential new site, once its Elizabeth Street lease expires.

The planned development comes as Australian retail sales grew +0.4 per cent in September in line with the previous month's consensus expectations.

The data was characterised by solid gains in household goods and cafes, which improved at +1.02 per cent month on month and +0.86 per cent month on month respectively, while there was some decline in department store sales (-1.96 per cent month on month).

Colliers International associate director research  Daniel Lees said when examining the data year on year, overall retail sales remain stable.

"While some of the major Australian retailers are undergoing a period of strategic change and turbulence, in many cases this is occurring because new entrants see our market as appealing and are choosing to pursue businesses ventures here," Mr Lees said.

"Australians are affluent, well travelled and have an appetite for global brands at compelling prices. Our domestic players are simply reacting to increased levels of competition with well-developed omni-channel business models."

Once completed, the new Stockland centre will be more than doubled in size to about 70,000 square metres and in addition to David Jones, will include BIG W and an exciting, new-format Target with its latest products and customer service innovations. Stockland will also develop the biggest and best new Dan Murphy's store in the trade area.

The centre will also have a new-concept JB Hi-Fi Home store, and a Harris Scarfe department store, bringing the total to 225 stores.

Stockland chief executive Mark Steinert said the group had identified Stockland Green Hills as a highly "accretive redevelopment opportunity".

"It's already one of the most productive centres in Australia and this expansion will enable us to capture a portion of the estimated $867 million of escape expenditure that leaves the primary trade area every year," Mr Steinert said.

John Schroder, chief executive of commercial property at Stockland, said Green Hills was already one of the group's highest-performing centres, and one of the retail industry's most productive.

"This $377 million redevelopment will take Green Hills from strength to strength to ensure it becomes an absolute powerhouse within the regional economy," Mr Schroder said.