At the launch of Dick Smith’s flagship Sydney store, Sydney Central, yesterday evening CEO Nick Abboud unveiled the company’s ambitious growth strategy referring to an entrepreneurial spirit and hunger for success that is the new driving force behind the brand. The announcement comes ahead of the opening of Dick Smith’s Lilydale store in Melbourne, which takes place today.
Having focussed on the business turn-around since the Anchorage purchase in November last year, Dick Smith is now in a strong position as it moves into its growth phase. With a turnover of $1.3billion today, a great balance sheet with net assets worth $160million at the end of June this year, no core net debt and the recruitment of a strong senior team, the business is ready to go.
The key pillars that form an integral part of Dick Smith’s growth strategy include more stores, best brands and great service.
· Sydney Central is the first of many new stores scheduled for opening, with 17 taking place before the end of FY14. The goal is to increase Dick Smith’s footprint from 323 to over 400 stores in the next three years
· In New Zealand the business is investing in store refurbishments. Pekekohe and Sylvia Park have already been upgraded, with up to 10 more stores being scheduled for the coming year
· Store growth is accompanied by an innovative omni-channel strategy that will enable customers to shop in a way that best suits their needs, whether that’s in store, online, via click and collect, or from their phone with the upcoming launch of the new Dick Smith app
The best brands
For continued growth, Dick Smith’s strategy is to work with the biggest and best brands to ensure customers have access to more market firsts, competitive prices and the best range. Sydney Central is home to some of the biggest brands in the industry including Samsung, Apple and Sony.
Samsung will have a ‘store-in-store’ presence in Dick Smith in new stores in Australia and Samsung computers are being introduced into New Zealand stores. In addition, the business is forming a strategic partnership with Apple that is focussed on expansion.
In Australia, Dick Smith is planning a post-paid mobile phone roll out in September, whereas in New Zealand, Dick Smith’s Telco offering is now represented by all the major players including Vodafone,
Telcom, 2 degrees and Skinny. Other key brand partners include Beats and Go Pro, who will distribute in 130 stores throughout Australia and New Zealand.
For Dick Smith’s new CEO, his team is integral in being able to achieve Dick Smith’s goals for growth.
“We have a recruitment strategy to bring in the profile of the best people we need to deliver the growth plan. For instance we are investing in the development of our Sales team through the roll out of our SERVE ForwardTM training program, which is designed to ensure Dick Smith is a customer-led business.
“Through this, we are building a high performance culture that will be highly rewarded for delivery through programs like our CEO Platinum Club and an improved commission structure.” said Nick.
Sydney Central Store
The Dick Smith Sydney Central store offers customers a new way to experience technology. As well as working with big brands, Sydney Central is set up to encourage more customer interaction with many products ‘out of the box’ for a more tangible shopping experience. The store is also home to the first Dick Smith mobile store, where customers can experience hands-on, the latest mobile offerings.
Customers will find the store’s product range is focussed on computers and mobility with a strong presence in home entertainment. The stock has been selected to suit the CBD demographic most likely to shop at the Sydney Central store.
The Sydney Central Store will be open to the public from Thursday, 1 August and is located on the ground floor of Westfield, Pitt Street Mall near the food court.