Photo by Ashleigh Paikos
Dick Smith Stores Culled
It appears to be business as usual in the Dick Smith Scarborough store, despite Woolworths' shock announcement that it would be closing the doors of 100 under-performing Dick Smith stores nationwide earlier this year.
Woolworths said that although it was closing stores, electronics were still an important category for the company.
And although the Scarborough store's doors are still open for trading, the Balcatta store is plastered with posters stating ‘closed for business.’ A nearby business owner said that the store had closed only a few weeks earlier.
Woolworths CEO Grant O’Brien said that Woolworths would still continue to develop and grow the electronics' area of its multinational company, but would do so through the Big W business.
He said: “A divestment of Dick Smith will enable the Woolworths group to focus more investment on serving customers in its core business with a strong multichannel offer”.
Mr O’Brien also went on to say that he believed that separating Dick Smith from Woolworths was in the best interest for both businesses.
Benedict Brook from Woolworths' press office confirmed that although some stores were closing down, it is not Woolworths group's plan to close down all of the Dick Smith stores and that the idea is to make Dick Smith a good solid business.
The closure of 100 stores nationwide could mean that some customers may look for a new electronic shopping venue, which could see businesses such as JB Hi-Fi becoming the go-to place for electronics.
JB Hi-Fi CEO Terry Smart said that the closing of some Dick Smith stores will be a benefit for JB Hi-Fi.
He said: “Stores closing means that customers will be looking for an alternative place to shop.”
Although JB Hi-Fi may benefit financially from Woolworths' decision to close some of its Dick Smith stores, Mr Smart stated: “It’s too early to see a rise in sales, but we should benefit from that.”
With doors already closing for some of the stores, Woolworths has said that affected staff will be offered employment in other areas of the Woolworths Company group.