Dick Smith + David Jones Deal “Watertight”
”It’s business as usual for us, we have a pretty water tight contract with each other,” Nick Abboud Dick Smith CEO told Fairfax.
Last week, it emerged South African-based Woolworths is proposing a $2.15 bn takeover of the Australian retailer, which last year Dick Smith signed a three year retail agreement with, to operate its underperforming electronics depts. in 30 locations.
Abboud says he has not yet met with DJ’s potential new owners to talk shop.
”At this point we have had no discussions [with Woolworths] but we look forward to meeting up with the new owners at some point.”
‘David Jones Electronics Powered by Dick Smith’ sells higher-end, ‘aspirational technology’ to suit the David Jones customer demographic. Dick Smith pay DJs monthly a fixed percentage of the sales of electronics.
The agreement was effective from October 1 last.
Announcing the deal, David Jones CEO Paul Zahra cited benefits including better product range and “great potential for sales and profit” for both retailers.