Updated In an Inside Retail PREMIUM exclusive, Dick Smith CEO responds to speculation about David Jones breakup. Department store, David Jones, and electronics retailer, Dick Smith, have not discussed putting an end to their retail partnership, says Dick Smith CEO, Nick Abboud. Rumours surfaced recently that under its new ownership, David Jones is planning to opt out of the initial three-year agreement which allows Dick Smith to operate a consumer electronics concession within David Jones stor
res known as ‘Electronics powered by Dick Smith’.
“I know some comments came out about David Jones, we’ve not had any of those type of discussions,” Abboud told Inside Retail.
He said both parties will continue to work together, and like any supplier contract “we’ll see where we land”. With the agreement due to expire in October 2016, Abboud said it is normal expectation for both parties to review the partnership going forward.
Dick Smith also announced it is planning to enter a new product category, small appliances.
“Dick Smith has confirmed that it will launch Connected Homes, a category within its retail stores that will feature a range of small appliances. Two Sydney stores will stock the range from August 2015, with Connected Homes available across a selection of Dick Smith Australia and New Zealand stores from October,” Abboud said.
Abboud confirmed that the two key pillars of the company’s growth strategy – an aggressive program of store openings and increasing the percentage of online sales of 10 per cent – were on track.
“We are on track for our growth plans for the next couple of years. We’ve got to 400 stores now, and our vision is to get to the 430 store mark.”
The expansion of the store network is designed to drive sales growth by providing a convenient location to pick up items purchased online. Abboud said that currently, 50 per cent of online purchases were being picked up in Dick Smith stores.