EXCLUSIVE:Myer Tipped To Get Out Of TV Market In 2015

TV brands currently sold by Myer include Samsung, Panasonic,
Sony, LG, Philips, Hisense and Hitachi.

ChannelNews is still waiting for an official reply from
Myer.

A senior Myer source told ChannelNews said that “there is a
high probability that we will exit the TV market in 2015”.

Last year arch rival David Jones exited the consumer
electronics market after cutting a deal with Dick Smith.

Since then Dick Smith has restricted the business with the
new David Jones Dick Smith operation now producing “solid results” according to
Dick Smith CEO Nick Abboud.

Currently David Jones accounts for 3 per cent of Dick
Smith’s total turnover, in the year since it opened its first outlet in the
department store – under the banner “David Jones Electronics Powered by Dick
Smith” – it now accounts for more than 50 per cent of Dick Smith’s total sales
of specialised high-end equipment, such as curved and 4K high-definition TVs
and pricey audio brands such as Bose Abboud claims.

What is not known is whether Myer are looking at a similar
deal with a key retail partner.

JB Hi Fi CEO Richard Murray said that he was not aware of
the Myer move, he also said that JB Hi Fi were not talking to Myer about a
similar deal.

Murray who like most consumer electronics retailers is “flat
out” driving pre-Christmas sales claims that he is not certain that long term a
Myer deal would work because of the locations of the Myer stores which are by
majority close to a JB Hi Fi, Dick Smith or Harvey Norman store.

Nick Aboud said “We are happy with the customer feedback we
are getting through the David Jones sales channel, and are getting good
momentum in sales. We have just had the first anniversary of our first store
opening last week and we are talking big growth in (sales) against the first
week last year,” Dick Smith chief executive Nick Abboud told The Australian.

Dick Smith raised the curtains on its David Jones format
last Oct?ober and it is believed fourth-?quarter sales growth of close to 100
per cent have carried through into the new financial year.