More than 800 jobs will be created with news that South Africa’s Woolworths Holdings will set up its Australasian office in Melbourne, the Victorian Government says.

The company owns Australian fashion retailers David Jones and the Country Road Group.

Premier Daniel Andrews said the move reinforced Victoria’s position as one of the best places in the world to do business.

The change will see David Jones’s Sydney head office moved to Melbourne as part of a consolidated “campus-style” headquarters to be shared with Woolworths Holdings’s other businesses Country Road Group, Mimco, Trenery and Witchery.

Mr Andrews would not be drawn on what kind of incentives the state offered to secure the relocation.

“It is a very competitive market, and it would be foolhardy for us to be listing all the ways in which we attract and boost the strongest economy in our nation,” he said.

Woolworths Holdings chief executive Ian Moir said the decision to move to Melbourne was about growth.

“We plan to open stores, create jobs and build new parts of our business,” he said in a statement.

“Melbourne was the logical choice for a centre of retail excellence that will enable substantial financial, operational and cultural benefits for our group.”

Melbourne’s ‘liveability’ attracting business: executive

Dr Jackie Fairley, from Melbourne Business School, and director of Starpharma Holdings said she believed the business climate in Melbourne was improving.

“I think Melbourne is carving out a place for itself in a number of industries,” she told 774 ABC Melbourne.

“Clearly it’s one of the most liveable cities and it has a highly skilled and well educated workforce.

“I think the liveability and the ability to retain staff is an important part of having a productive workforce.”

Dr Fairley said Sydney was more expensive for businesses.

“I think that some of those issues, the gridlock and some of the infrastructure problems in Sydney no doubt impact as do property values,” she said.

“I think there are plenty of areas of Melbourne opening up for more reasonable office space costs.”