Dick Smith Looks To Expand Consumer Reach Via Different Store Formats
As the electronics retailer revealed at the recent Macquarie Australia Conference, store growth across its various formats is a focus through to the 2017 financial year.
In total, Dick Smith currently operates 390 stores across its four different formats in Australia and New Zealand, and is targeting 420-430 stores by 2017. Dick Smith currently operates 347 Dick Smith stores, 30 David Jones Electronics Powered by Dick Smith stores, nine Move stores, and four Move by Dick Smith stores at Sydney International Airport.
Dick Smith, which posted strong sales growth in the 2015 first half, with net profit after tax up marginally year-on-year, commenced trading of Move by Dick Smith at Sydney Airport earlier in the year in a continuation of its strategy of branching out into different formats.
This strategy has in recent years seen the establishment of Dick Smith’s Move “fashtronics” branch, with Dick Smith also partnering with David Jones as it seeks to gain a competitive advantage and target a wider demographic via the expansion of its store network formats.
While Dick Smith had been targeting approximately 450 stores by 2017, as outlined by the retailer upon release of its 2015 first-half results, its revised target incorporates the deferral of around 10 Move stores in New Zealand, along with anticipated store closures.
So far in 2015, Dick Smith has opened 13 new stores, with six stores closed.
Store-in-store also remains a focus for the retailer, with Dick Smith partnering with Samsung, Apple, Vodafone and Fitbit among others, building upon supplier relationships.
Meanwhile, Dick Smith is seeking to complement its various store formats via online and omni-channel, with online currently representing over 7 per cent of its retail sales. Dick Smith states online is well-placed to total 10 per cent of retail sales by 2017.
In the 2015 second half, Dick Smith expects sales growth of around 9 per cent, with growth in net profit after tax of 6-11 per cent.
Dick Smith’s 2015 full-year guidance for growth of net profit after tax of 3-5 per cent remains unchanged.