Dick Smith in store decline

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#1028313 20-Apr-2014 19:28

DSE are just becoming another Noel Leemings/Harvey norman - only differentiated by a few home brand lines.

It is a bit unusual as companies usually try to differentiate on something -- but, DSE is trying to do the opposite and become a clone of the others.

I have doubts that DSE will be around in 2 years.

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#1028320 20-Apr-2014 20:09

surfisup1000: I have doubts that DSE will be around in 2 years.

One year?

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#1028321 20-Apr-2014 20:16

Could be a great fire sale to come then. Assuming there's any stock left by that time.

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#1028322 20-Apr-2014 20:19

Not really. They don't really sell anything that I want. Last time I went in because of a sale on hdd they had nothing large. A whole lot of crap laptops and only low end tvs and bluray etc. Overpriced cables I wouldn't buy at 80% off. The mobiles will never make it to a fire sale.

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#1028397 20-Apr-2014 22:51

surfisup1000: DSE are just becoming another Noel Leemings/Harvey norman - only differentiated by a few home brand lines.

It is a bit unusual as companies usually try to differentiate on something -- but, DSE is trying to do the opposite and become a clone of the others.

I have doubts that DSE will be around in 2 years.

To be fair.
They're not a HN or NLeeming.
They do not sell fridges / freezers / stoves / cooktops / blenders / mixers etc.
If anything, they're looking to mimic JB Hifi minus the media... and that would be because they 'kind of' tried that a while ago, but just seemed to do it in a half ended manner. That, and it's hard to see physical media as being the 'way forward'.
They really are a walk in on your lunch break affair. But if you're looking to fit out your home, dream on.

I do doubt they'll go out of business any time soon, after all, they're still profitable.
However, with a private equity owner, we will most likely to see another change of ownership as the current approach isn't overly profitable. The interesting question, would be 'who will buy them'?

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#1028443 21-Apr-2014 02:22

richms: A whole lot of crap laptops

Now that is a good point.
I havent seen a laptop in there that costs more than $1k for a while.

I was setting up the broadband for a couple of elderly guys on saturday /yesterday.
One was telling me about his brand new laptop which he bought for $599 which he thought was a bargain.

I had to politely tell him dont expect it to last more than a year.

They also have no run-up service like harvey norman.

So he hadnt even turned it on - bought the laptop because he was getting broadband so an hour we had to sit there and wait for the stupid thing to install the basic software, openoffice, the antivirus he had purchased etc. We provide broadband - I specifically chose to get out of IT support because I was sick of dealing with people like him - but I felt sorry for the old guy so did it anyway.

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#1028467 21-Apr-2014 08:46

Dunnersfella: They're not a HN or NLeeming.
They do not sell fridges / freezers / stoves / cooktops / blenders / mixers etc.
If anything, they're looking to mimic JB Hifi minus the media... and that would be because they 'kind of' tried that a while ago, but just seemed to do it in a half ended manner. That, and it's hard to see physical media as being the 'way forward'.
They really are a walk in on your lunch break affair. But if you're looking to fit out your home, dream on.

I personally think that there may be a workable business strategy in specialising in portable electronics and accessories - sort of like a bricks and mortor version of Mighty Ape. Unfortunately, as it stands, Dick Smith still don't have any advantage over the other big box retailers even in those particular product lines.

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#1028685 21-Apr-2014 20:11

alasta:
Dunnersfella: They're not a HN or NLeeming.
They do not sell fridges / freezers / stoves / cooktops / blenders / mixers etc.
If anything, they're looking to mimic JB Hifi minus the media... and that would be because they 'kind of' tried that a while ago, but just seemed to do it in a half ended manner. That, and it's hard to see physical media as being the 'way forward'.
They really are a walk in on your lunch break affair. But if you're looking to fit out your home, dream on.

I personally think that there may be a workable business strategy in specialising in portable electronics and accessories - sort of like a bricks and mortor version of Mighty Ape. Unfortunately, as it stands, Dick Smith still don't have any advantage over the other big box retailers even in those particular product lines.

While there's some margin to be found in the portable electronics market... I don't know if it'll pay the rent in the likes of a Westfield's shopping mall!
Headphones / MP3 players are toast, selling cellphone contracts seems to be the place where many retailers are trying to focus. But the telcos can only buy market share for so long...
If they owned their stores, sure, it could work for them. But I don't see much in their books re: NZ property.

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#1028696 21-Apr-2014 20:31

A number of years back I went into DS and asked for a variable capacitor, The salesperson advised me no such thing existed and I must be speaking about a variable resistor,

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#1028727 21-Apr-2014 21:13

johnr: A number of years back I went into DS and asked for a variable capacitor, The salesperson advised me no such thing existed and I must be speaking about a variable resistor,

DSE actually used to offer some basic electronics training to staff who wanted to take it, was up to or around 6th or 7th form physics level but maxed out on 555 timers etc. I did all the modules when I started and got ripped a new one by the HR lady when I referred to it as 'pay rise paperwork' because I thought it was easy. I was told under no uncertain terms that it was 'valuable staff training that I should take very seriously'... Minimum wage went up several times and basically wiped out the benefit of getting the internal qualification.

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#1028748 21-Apr-2014 21:34

insane:
johnr: A number of years back I went into DS and asked for a variable capacitor, The salesperson advised me no such thing existed and I must be speaking about a variable resistor,

DSE actually used to offer some basic electronics training to staff who wanted to take it, was up to or around 6th or 7th form physics level but maxed out on 555 timers etc. I did all the modules when I started and got ripped a new one by the HR lady when I referred to it as 'pay rise paperwork' because I thought it was easy. I was told under no uncertain terms that it was 'valuable staff training that I should take very seriously'... Minimum wage went up several times and basically wiped out the benefit of getting the internal qualification.

That was probably when Dick Smith still owned it. But those days are long gone. Unless they are selling something that I need, and it is cheaper, such as an external harddrive, I don't buy there. When I was in there last week when I was looking for an ipod case, they had rows of mobile cases, a lot were their own brand, but not a single ipod case that was suitable. I think the warehouse has a better selection these days for some things.

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#1029154 22-Apr-2014 14:43

Once was a time when I would've rated them #1 out of the big resellers.

That was a long time ago...

DarthKermit

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#1029167 22-Apr-2014 15:21

After participating in this thread, I walked into the local DSE purely to have a quick look. It was a very quick look. I was back outside in less than two minutes.

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#1029401 22-Apr-2014 20:40

I went into Dick Smith Riccarton Mall yesterday and the main impression I got was low stock levels, and *lots* of floor space not being used.     For example, in one place they had put some freeview aerial boxes to try to fill a space (or that is what it looked like to me.)     Lots of big TVs but no-one looking.    Short staffed - an alarm went off on one of their displays and it took minutes for it to be turned off.

They had laptops for sale but on one bench there were no laptops but *lots* of A4 sized posters advertising extended warranties.    The computers they had turned on had an annoying slideshow which went from a brief summary of specs. straight onto another slide which extolled the virtues of extended warranties!! (Surprise surprise)    There was no way a customer could have a look at the performance information in control panel.

As for cameras what they do have has been moved to the back of the shop.     Their range of cameras is pathetic compared to Noel Leeming or Harvey Norman.   I would not be surprised if cameras is the next product range they will drop.   This is not surprising of course given the decline in compact cameras sales everywhere.

They seem to be dropping products all the time.    No sign of gaming joysticks any more.    No sign of e readers.    Samsung the only brand of tablet.     The Apple display area looks the same as it did 2 years ago.
The only attractive display with a bit of class is the Samsung area.     As for them being TechXperts, I'd take that with a grain of salt or two judging by the low staff levels.

Compared to the Noel Leeming and Harvey Norman stores in Christchurch the Dick Smith store does not look vibrant or doing well.     The staff seem friendly enough though.

sbaird

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#1029404 22-Apr-2014 20:45

Apparently the new owners tried to aggressively negotiate better terms of trade with the suppliers/manufacturers and some of them told them where to shove it,

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