{"id":90555,"date":"1999-12-31T00:32:00","date_gmt":"1999-12-30T13:32:00","guid":{"rendered":"http:\/\/smartoffice.com.au\/dick-smith-stores-struggle-as-takeover-claims-emerge\/"},"modified":"1999-12-31T00:32:00","modified_gmt":"1999-12-30T13:32:00","slug":"dick-smith-stores-struggle-as-takeover-claims-emerge","status":"publish","type":"post","link":"https:\/\/staging.strixdevelopment.net\/smartoffice\/1999\/12\/31\/dick-smith-stores-struggle-as-takeover-claims-emerge\/","title":{"rendered":"Dick Smith Stores Struggle As Takeover Claims Emerge"},"content":{"rendered":"<p>Dick Smith is facing the real possibility that several of their unprofitable stores will be closed down in the new year with several store managers claiming that foot traffic into their stores is extremely &#8220;slow&#8221;. We can also reveal that an Asian group is currently running a ruler over the struggling retail group.<\/p>\n<div><span style=\"font-family: sans-serif; font-size: 13.3333px;\">A visit yesterday to several Dick Stores in Sydney revealed poor traffic and in some stores during the peak lunch time period there were no customers queuing to pay for goods. &nbsp;<\/span><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">At 1.00pm yesterday at the Dick Smith George Street store ChannelNews saw only one person pay for goods, the store was primarily empty despite it being one of Dick Smiths flagship appliance stores.&nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">It was also the same at the Company&#8217;s other CBD store located right next to Myers and one of the CBD&#8217;s biggest food courts.<\/p>\n<table style=\"\" align=\"Center\" border=\"0\" cellpadding=\"4\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"530\" height=\"400\"><a href=\"javascript:;\" onclick=\"window.open('http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_1.jpg', 'foo', 'width=365 height=205, scrollbars=yes, resizable=yes');\"><img fetchpriority=\"high\" decoding=\"async\" width=\"530\" height=\"400\" src=\"http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_1.jpg\" border=\"0\"><\/a><br \/>Click to enlarge<\/td>\n<\/tr>\n<tr>\n<td width=\"530\">Dick Smith George Street store yesterday, during peak lunch time period<\/p>\n<table style=\"\" align=\"Center\" border=\"0\" cellpadding=\"4\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"530\" height=\"400\"><a href=\"javascript:;\" onclick=\"window.open('http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_2.jpg', 'foo', 'width=365 height=205, scrollbars=yes, resizable=yes');\"><img decoding=\"async\" width=\"530\" height=\"400\" src=\"http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_2.jpg\" border=\"0\"><\/a><br \/>Click to enlarge<\/p>\n<table style=\"\" align=\"Center\" border=\"0\" cellpadding=\"4\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"530\" height=\"300\"><a href=\"javascript:;\" onclick=\"window.open('http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_3.jpg', 'foo', 'width=365 height=205, scrollbars=yes, resizable=yes');\"><img decoding=\"async\" width=\"530\" height=\"300\" src=\"http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_3.jpg\" border=\"0\"><\/a><br \/>Click to enlarge<\/td>\n<\/tr>\n<tr>\n<td width=\"530\">Right across the road from the Dick Smith store consumers stretched back to the door as they waited to pay for goods.  <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<table style=\"\" align=\"Center\" border=\"0\" cellpadding=\"4\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"530\" height=\"400\"><a href=\"javascript:;\" onclick=\"window.open('http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_4.jpg', 'foo', 'width=365 height=205, scrollbars=yes, resizable=yes');\"><img loading=\"lazy\" decoding=\"async\" width=\"530\" height=\"400\" src=\"http:\/\/news.smarthouse.com.au\/resources\/articleimages\/31gew39r_embeded_image_4.jpg\" border=\"0\"><\/a><br \/>Click to enlarge<\/td>\n<\/tr>\n<tr>\n<td width=\"530\">JB Hi Fi Store George Street Sydney<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">One store manager at a Dick Smith store said &#8220;It&#8217;s been like this for weeks, we are not getting the traffic into stores despite Dick Smith delivering good discounts. I think there is a perception that Dick Smith is all about online discounts with stores being given a miss. We are carrying a lot of house brand products that also puts people off despite the fact that we also have a lot of quality brands&#8221;.&nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">He added &#8220;Some managers are concerned that they and their staff will be out of a job after Christmas as some stores are not profitable and the Company is not in a position to carry unprofitable stores&#8221;. &nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">10 minutes after visiting the Dick Smith CBD stores we visited two JB Hi Fi stores. At JB Hi Fi in the strand consumers queued the whole length of the store to pay for their purchases which included gaming consoles, smartphones, new two in one notebooks and covers.<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">Internally Dick Smith management have moved to look at restructuring their Hong Kong sourcing office after buyers at the besieged Company complained about the amount of &#8220;house brand&#8221; stock being shipped into Australian stores without consulting buyers in Australia.&nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">The General Manager of the Hong Kong Office for International Sourcing at Dick Smith Electronics is Tony Abdel-Ahad who last week flew back to Hong Kong after a visit to Australia.<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">&nbsp;Abdel-Ahad, joined Dick Smith from Abu Dhabi based Mezzo Middle East two years ago his experience is in UAE real estate and not consumer electronics.&nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">This has prompted senior Dick Smith management to now review their sourcing operations. &nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">Yesterday Dick Smith shares slumped to $0.75 after selling 12 months ago at $2.29.<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">ChannelNews has been told that an overseas investor is currently looking at moving on the group with a view to acquiring the Company. Sources have said that the share value of the Company has to fall further before a takeover move is triggered.&nbsp;<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">&#8220;They have the money and are cashed up. They believe that the Company will struggle to lift sales during the Xmas New Year period due to stock problems. It&#8217;s anticipated that the stock will fall further when they announce their third quarter results, that&#8217;s when a takeover move will be triggered&#8221; the source said.<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">ChannelNews has been told that the group will dump several consumer electronics lines along with appliances in favour of taking on Jaycar and Super Cheap Auto.<\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\"><br \/><\/span><\/font><\/div>\n<div><font face=\"sans-serif\"><span style=\"font-size: 13.3333px;\">&#8220;The Asia based group believe that they can reposition Dick Smith as &#8216;The Gadget Shop&#8217; with revenue being generated by selling products similar to what is being sold by Jaycar and Super Cheap Auto. Dick Smith has better locations and by focusing on technology and electrical products including toys it&#8217;s believed that they can turn the Dick Smith stores around&#8221;.&nbsp;<\/span><\/font><\/div>\n<div style=\"font-family: sans-serif; font-size: 10pt;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dick Smith is facing the real possibility that several of their unprofitable stores will be closed down in the new year with several store managers claiming that foot traffic into their stores is extremely &#8220;slow&#8221;. We can also reveal that an Asian group is currently running a ruler over the struggling retail group.<\/p>\n","protected":false},"author":42,"featured_media":91472,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[28,179],"tags":[],"class_list":["post-90555","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-archive","category-retail","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dick Smith Stores Struggle As Takeover Claims Emerge - Smart Office<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/staging.strixdevelopment.net\/smartoffice\/1999\/12\/31\/dick-smith-stores-struggle-as-takeover-claims-emerge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dick Smith Stores Struggle As Takeover Claims Emerge - Smart Office\" \/>\n<meta property=\"og:description\" content=\"Dick Smith is facing the real possibility that several of their unprofitable stores will be closed down in the new year with several store managers claiming that foot traffic into their stores is extremely &quot;slow&quot;. 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