The Channel logo

News

By | Natalie Apostolou 2nd November 2011 23:00

Dick Smith faces tricky times

Retailer faces review possible extinction

Australia's iconic high street gadget, TV and computer retailer Dick Smith faces an uncertain future, following the announcement that parent company Woolworths will be conducting strategic review of the underperforming electronics chain.

Woolworths has already closed seven Dick Smith in the 2011 financial year.

Analysts are already suggesting that Woolworths might merge the Dick Smith stores into its BigW and Masters hardware businesses.

The review comes as Woolworths revealed that it was to re-focus strongly on ramping up its online platforms.

“We are really seeing a revolution in retail as customers integrate mobile, social networking and other internet-enabled technologies into their bricks and mortar shopping experience,” said Woolworths chief executive, Grant O’Brien.

“It isn’t a question of online or offline; it’s about creating integrating the two seamlessly and we are increasingly finding that our most valuable customers are ones who do both,” he said

O’Brien, revealed that Woolworths customers who shop both in-store and online spend 70 per cent more than those who just shop the old school way. The grocery giant will also be working on upgrading its iphone app, which has had 1.1 million downloads since it launched in August.

Woolworths subsidiary Big W has also announced the launch of an app for customers with which they can both shop and use price comparison tools.

Earlier this year, Woolworths implemented Visa’s contactless payment technology, payWave, across all stores including Dick Smith. ®

comment icon Read 21 comments on this article alert Send corrections

Opinion

frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Gavin Clarke

This time, Larry's Oracle is going after the networking giants

Features

No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever
Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club