Dick Smith Moves To Copy JB Hi Fi In The Appliance Market
The Company has also hired Bita Lowry, the former small appliances buyer for Myer to spearhead the Companies relationship with small appliance vendors.
The move is a blow to the likes of The Good Guys, Betta Electrical and Harvey Norman who have moved to shore up their relationships with appliance vendors while also increasing their house brand range.
Nick Aboud the CEO of Dick Smith told ChannelNews that he was “more than happy” as to how Dick Smith was currently trading he said that he was confident that there would be a big “upside” for his appliance business.
He said “I do not see any problems dealing with suppliers, we will go extremely well, we intend to deal with big brands including Panasonic, Delonghi, Braun etc. We are currently fitting out 100 stores and we anticipate that these will be finished by Christmas”
Aboud added “we intent to focus on key brands in the coffee, health and food markets as opposed to larger appliances” he said.
Several large appliance vendors have told ChannelNews recently that they are “reluctant” to supply new appliance retailers because they fear it will “tarnishing their relationships” with the likes of Harvey Norman, The Good Guys and partners who have been selling appliances for several years.
Senior JB Hi Fi management recently admitted to ChannelNews that not all suppliers were keen to do business with the mass retailers because of existing relationships.
Aboud said that 100 existing Dick Smith stores will get makeovers including the Companies George Street store which will open on the 16th of August as a ConnectedHome operation, this store is right next to Myer in the Sydney CBD.
Two years ago JB Hi Fi moved into the appliance market in the last quarter the mass retailer grew their appliance business 11.8%, the Company has 43 JB Hi Fi home stores.