Woolworths dumps Dick Smith Electronics

WOOLWORTHS is making moves to sell its Dick Smith electronics division and close down up to 100 underperforming stores.

The sell-off is part of a larger retailer battle between Woolworths and Coles, with Woolworths seeking to focus on its core supermarket business, but the weak performance of the bricks-and-mortar electronics retailer is also a factor.

Woolworths has already received a number of unsolicited offers for Dick Smith. Given its Big W and online presence, the sale of Dick Smith will not stop Woolworths from continuing to sell electronic merchandise to consumers.

Dick Smith is a well-known retailer of electronics goods, not just to consumers, but also to electronics tinkerers, since it stocks components. It was founded by entrepreneur Dick Smith, and sold to Woolworths in 1982 for $20million.

However, much of the market has moved away from retail shops online, given the presence of multiple fast-shipping vendors with a greater range of parts and better prices.

There are currently 386 Dick Smith stores in Australia and New Zealand. As many as 100 of these may be closed in an operations overhaul prior to the sell-off.

Woolworths dumps Dick Smith Electronics

TAG:consumer electronics board components