Dick Smith To Open 30 New Stores Inside David Jones
As JB Hi Fi was announcing a big increase in sales Dick Smith was announcing a Retail Brand Management Agreement with David Jones, which will see 30 new Dick Smith stores opened inside David Jones stores.
Under the terms of the deal Dick Smith will operate the stores in a move that will see the department store group exit the consumer electronics market.
Dick Smith management said that the RBMA allows the restructured group to stretch its network of stores even further.
Under the banner ‘David Jones Electronics Powered by Dick Smith’, the stores will be operational from 1 October, 2013. This strengthens Dick Smith’s already strong retail footprint of 326 stores across Australia and New Zealand, having recently opened Lilydale in VIC and Sydney Central in NSW. Innaloo Westfield in WA is opening today with an additional 14 stores planned for 2014.
Dick Smith CEO for Australia and New Zealand, Nick Abboud, explains, “The RBMA entered into with David Jones is the next step in establishing ourselves as a major player in the market and directly links back to our business strategy to be the leading consumer electronics retailer in Australia and New Zealand.
“Forming strategic partnerships with like-minded companies is integral to our growth strategy. We couldn’t think of a better retailer to align ourselves with than David Jones, one of Australia’s most established and iconic brands.
“It’s a win-win for both companies. Dick Smith is expanding its network and reaching a wider, high-end customer base, while David Jones is increasing its product and services offering for its customers. It also strengthens Dick Smith’s buying power, which in turn allows for more competitive prices for customers across both stores.”
David Jones customers will benefit from more products than they’ve had access to before, such as the Amazon Kindle, as well as the opportunity to purchase mobile phones in store for the first time. The new ‘David Jones Electronics Powered by Dick Smith’ concept areas will have a strong focus on accessories, and will also range higher-end, more aspirational technology to suit the David Jones customer demographic.
Dick Smith will continue to roll-out its branded Samsung, Sony and Apple ‘store-in-store’ concepts within the David Jones stores to ensure delivery of the best brands and the best customer service.
David Jones CEO and Managing Director Paul Zahra said, “We look forward to teaming with such a well- established Australian brand such as Dick Smith. Our partnership will deliver many benefits for our customers including a broader range of Electronics products and ancillary services at more competitive prices in a seamless shopping experience for our customers. There is great potential for Sales and Profit upside that both of our companies will benefit from.”
Dick Smith will retain all existing David Jones consumer electronics staff and provide them with the training, support and confidence to succeed in their new roles.