Dick Smith in store decline

Forums › Off topic › Dick Smith in store decline

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ... | 94

18009 posts

Uber Geek
+1 received by user: 8465

Trusted

Lifetime subscriber

#1036237 3-May-2014 23:57

wakaridnnz: Holy crap! I'm in the library and I just saw an old bloke with a Dick Smith bag. It was like seeing a Bigfoot!

Photos!! This is nothing without photos!!

geek4me

843 posts

Ultimate Geek
+1 received by user: 78

Trusted

Lifetime subscriber

#1038193 7-May-2014 11:14

I haven't found my Dick Smith Trade Card or personal VIP Club Card to be very useful anymore. They don't give the discounts they used to provide so perhaps I should dump them. These days I go the JayCar for electronics who are now in Lower Hutt.

Dunnersfella

4100 posts

Uber Geek
+1 received by user: 887

#1438906 1-Dec-2015 21:44

Panasonic puts Dick Smith on credit

u-oh.

freitasm

BDFL - Memuneh
80654 posts

Uber Geek
+1 received by user: 41047

Administrator

ID Verified

Trusted

Geekzone

Lifetime subscriber

#1438908 1-Dec-2015 21:51

Just have to read this press release:

Non-cash adjustment following inventory review

Following the trading update at the Company’s Annual General Meeting on 28 October 2015, management initiated a review of inventory. The review, which is being conducted with the assistance of external consultants, remains in progress.

The objectives of this review include:

achieving category right sizing;
optimising the depth and breadth of inventory;
identifying the anticipated impact of achieving preferred weeks cover and the level of marketing support required to achieve these objectives, and;
driving customer-centric outcomes.
Whilst this review was prompted by the disappointing October performance, November trading was below expectations and stock holdings remain above management’s preferred levels.

Significant marketing activity continues in an effort to stimulate consumer demand during the all-important Christmas trading period. The benefits of this activity on inventory levels are, at this time, uncertain.

“We remain cautious on the outlook for the Christmas trading period,” said Dick Smith Managing Director and CEO, Nick Abboud. “We will continue to drive sales, maintaining flexibility on gross margin to reduce inventory and improve our net debt position.”

While the inventory review has not concluded, the Board has determined that a non-cash impairment of $60 million (pre-tax) is required. Further impairment may be required, depending on Christmas trading.

Given the non-cash write-down and the uncertain trading outlook, the Company is unable to re-affirm the profit guidance previously provided.

A further update will be provided in February 2016, when the half year results are released, or earlier if required.

Referral links: Quic Broadband (free setup code: R587125ERQ6VE) | Samsung | AliExpress | Wise | Sharesies

Support Geekzone by subscribing (browse ads-free), or making a one-off or recurring donation through PressPatron.

vexxxboy

4336 posts

Uber Geek
+1 received by user: 2072

#1438929 1-Dec-2015 22:18

good news for the consumer

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11554116

Common sense is not as common as you think.

Dunnersfella

4100 posts

Uber Geek
+1 received by user: 887

#1438939 1-Dec-2015 22:26

If they go out of business the consumer loses...
It's a fine line!

Mighty Ape

Shop now at Mighty Ape (affiliate link).

Brumfondl

1198 posts

Uber Geek
+1 received by user: 524

Trusted

Subscriber

#1438960 1-Dec-2015 23:04

Dunnersfella: If they go out of business the consumer loses...
It's a fine line!

I get your point, but I don't think they have been particularly relevant or helpful to the consumer for quite some time. If they were then they wouldn't be in so much trouble.

The people that will lose are the staff. Short-term the consumer will gain and long-term the consumer won't care.

nigelj

856 posts

Ultimate Geek
+1 received by user: 125

#1438965 1-Dec-2015 23:15

Honestly I'm not surprised, I'd have to dig up the stats, but I worked out that while not as bad as Mighty Ape (to which, and to be fair, I have subscribed to multiple of their newsletters), in about a 2 month period, there was only 1 or 2 days that they hadn't received a marketing e-mail. Every other day, there was 1-3 (and I think a couple of outliers beyond that) e-mails a day for so called 'sales'. In addition, I've noticed some of their decent sales staff have moved to other companies.

It's sad, if they still had the values of the old Dick Smith Electronics, I'd say it'd be sad to see them go, once upon a time they had a really good place in the market, but they've eroded any sentiment/good will for me.

mattwnz

20515 posts

Uber Geek
+1 received by user: 4795

#1438972 1-Dec-2015 23:49

nigelj: Honestly I'm not surprised, I'd have to dig up the stats, but I worked out that while not as bad as Mighty Ape (to which, and to be fair, I have subscribed to multiple of their newsletters), in about a 2 month period, there was only 1 or 2 days that they hadn't received a marketing e-mail. Every other day, there was 1-3 (and I think a couple of outliers beyond that) e-mails a day for so called 'sales'. In addition, I've noticed some of their decent sales staff have moved to other companies.

It's sad, if they still had the values of the old Dick Smith Electronics, I'd say it'd be sad to see them go, once upon a time they had a really good place in the market, but they've eroded any sentiment/good will for me.

Apart from the name, it doesn't really bear any resemblance to the original type of stores.

Last time I was in a store, the range was poor. There were rows of lower value stuffs like house brand iphone and ipad covers, which you can buy far cheaper on ebay / dx.com or trademe. Briscoes now also sell a lot of the stuff that they moved into, and can offer bigger percentage discounts. Even if they went back to the old format, I can't see them doing too well, as stores like Jaycar have replaced them. I also found them poor to deal with when I had a CGA claim a little while ago, and had to go to the manufacturer to get it sorted, so wouldn't regard their service as good. But would be a sad loss if they disappeared, just for competition in my town, and yet another empty store and job losses in the town. Hopefully another company takes them over with a new business model, rather than the constant race to the bottom pricing thing.

eracode

Smpl Mnmlst
9333 posts

Uber Geek
+1 received by user: 6203

ID Verified

Trusted

Lifetime subscriber

#1438987 2-Dec-2015 03:48

Dunnersfella: Panasonic puts Dick Smith on credit

u-oh.

Private equity can so often be a dirty business. Buyers of last resort. It will be interesting to see if Anchorage come out of this smelling like roses if there's an inquiry. They bought DSE for AUD94 million and sold it (via a listing) for AUD520 m 15 months later? Yowser!

Sometimes I just sit and think. Other times I just sit.

tripp

3848 posts

Uber Geek
+1 received by user: 1220

Trusted

Lifetime subscriber

#1439002 2-Dec-2015 07:08

It would be sad to see them go.
The only time I have been in there over the last few months was because my UE mega boom had an problem (which they tested in store and replaced on the spot).

I do look at their website once in a while however I don't subscript too their emails anymore as I was getting between 1 / 3 a day about "sales"

They need to find an area in the the market and stick to it like when they first opened i.e. become the retailer that everyone goes to for laptops/computers and have the stock on hand/next day etc.

Their real mistake was trying to screw $30 from a customer for a DSE branded cable when most people knew it cost them $1 from china.

Samsung

Shop now on Samsung phones, tablets, TVs and more (affiliate link).

sbiddle

30853 posts

Uber Geek
+1 received by user: 9996

Retired Mod

Trusted

Biddle Corp

Lifetime subscriber

#1439008 2-Dec-2015 07:24

It does have to raise serious questions about some of the figures that have been made public since the private equity buyout and the float.

Woolworths aren't dumb. They spent a huge amount of money trying to keep Dick Smith afloat, and in the end decided they couldn't do it. The mere fact it had been magically turned around within months of the private equity buyout started raising a lot of eyebrows in Aussie.

In Aussie there is no doubt that performance had been better, but NZ was just a sinking ship that was really a company with no idea who their target market was. They decided they wanted to be JB HiFi, but like many companies who simply decide to copy competitors rather than innovate, they just ended up struggling.

MikeB4

MikeB4
18775 posts

Uber Geek
+1 received by user: 12766

ID Verified

Trusted

Subscriber

#1439017 2-Dec-2015 07:45

In Hutt City JBHFI have just opened in Queensgate down stairs from DSE, the Hutt City DSE always looks like it's closing due to very low stock units.
In the weekend JB HiFi was very busy, DSE had more staff than customers. DSE NZ is in its death throws and I doubt will here next Christmas.

Here is a crazy notion, lets give peace a chance.

reven

3748 posts

Uber Geek
+1 received by user: 874

Trusted

#1439019 2-Dec-2015 07:50

MikeB4: In Hutt City JBHFI have just opened in Queensgate down stairs from DSE, the Hutt City DSE always looks like it's closing due to very low stock units.
In the weekend JB HiFi was very busy, DSE had more staff than customers. DSE NZ is in its death throws and I doubt will here next Christmas.

similar to Sylvia Park DSE, huge store, very empty (lots of empty space, they could pack about 10 times as much stock in there) most of the time theres less than 5 customers in the store. I walk in there on occasion, take one look in the store then think to myself "why am I in here", turn around and leave.

For cheap cables that I need quickly I go to pbtech/$2 shops. Electronics: jaycar/dx.com, tvs etc jbhifi. DSE will go out of business. But I might buy some stuff this xmas if they have huge discounts :) heres hoping for an 85" UHD tv for $1000 :P

tripp

3848 posts

Uber Geek
+1 received by user: 1220

Trusted

Lifetime subscriber

#1439026 2-Dec-2015 08:08

MikeB4: In Hutt City JBHFI have just opened in Queensgate down stairs from DSE, the Hutt City DSE always looks like it's closing due to very low stock units.
In the weekend JB HiFi was very busy, DSE had more staff than customers. DSE NZ is in its death throws and I doubt will here next Christmas.

That is the issue you go into a DSE at the moment and they look so bare, very little stock or no stock of products they have online. Nothing says "trouble" than not having stock. I really think there is room in the market for them but they really need to change on what they stock and stop being a "shop with everything" to a shop that is good at 1 or 2 areas of tech.

Like others have pointed out, pbtech = cheap cables, jbhif = tv etc I am sure DSE could have been the place to go for apple and laptops etc.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ... | 94