Dick Smith up for sale

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#575480 31-Jan-2012 18:07

It's such a bizarre phenomenon.

NZ companies struggle to break into oz, or make acquisitions work. Not always, but it seems a frequent occurrence. It's like they just 'don't get oz'.

Meanwhile Ozzie companies buy NZ assets and then ignore them, thinking they will gush cash. They don't, the companies are left to languish and people's lives get wasted as a result. Farmers springs to mind....

I recall dick smith acquired David Reid electronics. They served the enthusiast market of the 70s and 80s. Dickies brought competition but the market changed, and electronics became mainstream packaged goods.

I see opportunity in something different: retail presence.

A ready made retail network, penetrated with many stores and a good going concern, that needs to focus on customers stops top selling high end dross and crap electronics. I actually think the telco's should be interested - telecom, TelstraClear, 2degrees and so on.

Think about it: the Ufb world means a HUGE focus on home entertainment, mobile devices and Internet/computing/integration. The home and mobile experience.

Hmmmmm......

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Antoniosk

mattwnz

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#575489 31-Jan-2012 18:25

One reason NZ I think companies fail in Oz, is because the Ozzies love to support and buy from their own companies, and not overseas companies so much. The same applies to the US, NZ companies that expand into the US tend to retreat pretty quickley.

NZers tend to not really care which retailer they use, as long as they get a bargain. It also has to do with buying power. These huge Ozzie brands can come into NZ and setup huge stores under cutting the NZ local competitors, because they buy a lot more from their suppliers, so the suppliers can give them better discounts.

old3eyes

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#575494 31-Jan-2012 18:40

Sell it to the Chinese. Most of what they sell is made there..

Regards,

Old3eyes

alasta

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#575497 31-Jan-2012 18:44

I'd be surprised if any of the big electronics chains were doing well in NZ, to be honest. The market seems to be more competitive than ever, yet people seem to have less disposable income than ever.

freitasm

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#575504 31-Jan-2012 18:51

Mr Dick Smith is not happy about it.

[Australian entrepreneur] Dick Smith said Woolworths' decision was a sign that Australia is moving closer to the point when everything will be foreign owned.

crackrdbycracku

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#575507 31-Jan-2012 18:54

antoniosk:
Think about it: the Ufb world means a HUGE focus on home entertainment, mobile devices and Internet/computing/integration. The home and mobile experience.

True but the question remains, why would you want to compete in that market with JB Hi-Fi et al?

Jaycar has a great but small parts niche; JB, Harvey etc have a bigger range and are crushing DSE.

Why fight the biggest kids in the school yard for a melting ice cream [sandwich]?

I can't think of anything that DSE does that is 'added value'. Why would you the consumer shop at DSE over the others with bigger ranges and lower discounts?

Apple makes the same money if you buy the iPad from JB, Harvey or online, you get the same toy.

Let Dick Smith go the way or Georgie Pie and lets get on with the rest of life.

Didn't anybody tell you I was a hacker?

mattwnz

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#575519 31-Jan-2012 19:22

crackrdbycracku:
antoniosk:?
Think about it: the Ufb world means a HUGE focus on home entertainment, mobile devices and Internet/computing/integration. The home and mobile experience.? ?

True but the question remains, why would you want to compete in that market with JB Hi-Fi et al?

Jaycar has a great but small parts niche; JB, Harvey etc have a bigger range and are crushing DSE.

Why fight the biggest kids in the school yard for a melting ice cream [sandwich]??

I can't think of anything that DSE does that is 'added value'. Why would you the consumer shop at DSE over the others with bigger ranges and lower discounts??

Apple makes the same money if you buy the iPad from JB, Harvey or online, you get the same toy.?

Let Dick Smith go the way or Georgie Pie and lets get on with the rest of life.?
?

HN is not in all the aeras where DSE is. DSE also tend to be relatively small stores, with a relatively small range. I actually went to DSE to buy a canon camera and to ask them to match the price of another retailer, as it was local. They neither stocked the camera in their store or online, and apparently they no longer price match. Most other retailers will still price match.

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semigeek

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#575528 31-Jan-2012 19:51

Just going off track for a second, Dick Smith bought out David Reid Electronics, correct?

And maybe what we need is something like Radio Shack here.

oxnsox

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#575532 31-Jan-2012 20:09

The market for stores selling electro parts is small, most folk now want stuff that works out of the box or is plg-n-play with what they already have..
Best opportunity for DSE chain in NZ is their store locations and (smaller)size, suiting malls and smaller centers where there aren't the big-box retailers. Would probably make a good add on to locals like Farmers or Smiths city (and of course the DSE brand).

Okay so the stores don't appeal to the Geeks, but they do suit a heck of a lot of the other people out there. It's not that they're not necessarily making money, they just ain't making enough money for the Parent Woolworth bean-machine.

Jarno

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#575535 31-Jan-2012 20:26

semigeek: And maybe what we need is something like Radio Shack here.

We already have it. These days Radio Shack is pretty much exactly like what DSE is now.

I'm sure we would all love to have a hobby electronics store in every town, but I doubt that such an operation can be profitable. There simply isn't enough of us.

Bung

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#575553 31-Jan-2012 21:15

Jarno: I'm sure we would all love to have a hobby electronics store in every town, but I doubt that such an operation can be profitable. There simply isn't enough of us.

Were there ever enough? I recall Wiseman's in Wgtn going from popular to broke quite quickly and am surprised that Jaycar is still around.

Dunnersfella

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#575557 31-Jan-2012 21:30

oxnsox:

It's not that they're not necessarily making money, they just ain't making enough money for the Parent Woolworth bean-machine.

Spot on!

However, I don't think they're going to be an add-on for Farmers any time soon...
I'm assuming most people out there don't buy their TV etc from them, but those that do, do so purely to use their Farmers Card.
Oh and Smiths City aint gonna go there! Looking at their financial reports, there's no way they could afford to go into Aussie...

johnr

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#575580 31-Jan-2012 22:11

I asked for a variable capacitor once in the Takapuna store and the sales person advised me their was no such thing and I must mean variable resistor!

I went to the components section found the variable capacitor and left

insane

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#575585 31-Jan-2012 22:49

johnr: I asked for a variable capacitor once in the Takapuna store and the sales person advised me their was no such thing and I must mean variable resistor!

I went to the components section found the variable capacitor and left

The funny thing is that DSE do, or at least did have training modules that staff could do to get some knowledge about electronics. Unfortunately after doing both levels it only gave me a $0.70c or so / hour pay raise to a whopping $12.40 (2007), which was smaller than the minimum wage adjustment that year.

The training was basically similar to what you get from year13 physics, not great, but at least someone who didn't already know to, could have put a circuit together and understand what a 555 timer was etc, and where to find it in the store :)

I primarily sold out of the electronics section, and although my gross sales where always fairly low, my profit at the end of each day far outstripped those sales monkeys who took home the commission for selling TVs at discounted prices...

They would be best to halve each stores floor area, strip the stores of all the TV's etc, and concentrate on cables, wire, electronic tools, batteries, CD/DVDs, as that is where they were making HUGE margins, often up to 900%.

Skolink

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#575586 31-Jan-2012 22:50

johnr: I asked for a variable capacitor once in the Takapuna store and the sales person advised me their was no such thing and I must mean variable resistor!

I went to the components section found the variable capacitor and left

Serves them right you didn't pay ;) Would have been a good opportunity to say "see! see! A variable CAPACITOR". I usually note down the product code for things I think they won't be able to find.

I've often had to bite my tongue overhearing advice being given to a customer. Occasionally I've spoken up.

The good thing about DSE though is that they are in alot of smaller towns, great when you've forgotten a cable or something you really need. And I do like wandering around looking at the gadgets on display.

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