Dick Smith Plans 25 New Stores
Dick Smith Group aims to have approx. 400 stores in total across ANZ by FY15 including 30 Move “fashtronics” stores and its electronics stores inside David Jones.
Currently, the group has 372 stores open, with 4 more to open in FY14 and 24 next year, FY15, according to a presentation given by CEO Nick Abboud at a Macquarie investor conference, last week.
Dick Smith aims to rapidly expand Move store numbers seven fold to 30 – following recent openings in Melbourne and Brisbane.
Abboud also reaffirmed Dick Smith guidance for FY14, with total sales set to hit $1.22 billion on net profit of $40m.
Since the retailer was taken over by private investors and subsequently went public last year, the company has undergone a huge image makeover and rising profitability.
Sales growth is predicted to be higher across Dick Smith’s Australian stores – with total (like for like) sales expected to rise 3% for Q4 – up slightly from Q3, last. However, the pace of sales growth across Dick Smith Group including New Zealand is predicted to be slightly slower at 2.6%.
Office, mobility and entertainment are Dick’s core product categories, somewhat different from JB HiFi where white goods are now taking centre stage, with a slew of conversions to appliances-only Home stores planned.
5% of Dick Smith sales are online, which the retailer hopes to grow to 10% over 3 years, driven by ‘Click and Collect’ and better store fulfillment. This online figure is almost double that of rivals, including JB HiFi and Harvey Norman.
Average weekly sales for Dick Smith stores inside David Jones jumped a massive 80% in April last v’s October 2013. There are now 29 Dick Smith stores in operation inside the high end department store.
“Modest inflation in high technology categories” are also expected to boost future sales, the presentation shows.
Private label electronics are also forecast to jump to 15% of sales – up from 11% – currently.
The presentation also highlighted new private label tablets and audio gear to be released before Christmas.