Dick Smith Joins Forces With David Jones

Dick Smith is teaming up with upmarket retailer David Jones to open a network of “stores within stores” around the country. Could this alliance be good news for consumers or are prices only going to get higher? Talk of a “high-end customer base” doesn’t bode well…

Earlier in the month, we attended a Dick Smith media briefing where the company pledged to renew its focus on tech enthusiasts and premium, high-end branding. Today, the retailer revealed yet another business gamble, with 30 Dick Smith “store-in-stores” set to pop up in select David Jones stores around Australia.

From 1st October, you’ll begin to see “David Jones Electronics Powered by Dick Smith” sections inside select David Jones outlets. All existing David Jones electronics staff will be retained in the new branding move. From a consumer perspective, the chief difference will be a larger range of products at David Jones, including Amazon Kindle devices and mobile phones.

“The Retail Brand Management Agreement (RBMA) entered into with David Jones is the next step in establishing ourselves as a major player in the market and directly links back to our business strategy to be the leading consumer electronics retailer in Australia and New Zealand,” Dick Smith CEO Nick Abboud said.

“It’s a win-win for both companies. Dick Smith is expanding its network and reaching a wider, high-end customer base, while David Jones is increasing its product and services offering for its customers. It also strengthens Dick Smith’s buying power, which in turn allows for more competitive prices for customers across both stores.”

With consumers more frugal and bargain-hungry than ever, we’re not sure it makes sense to partner with one of Australia’s priciest retailers, but we suppose it does tie in with Dick Smith’s decision to focus on the premium side of the market.

What you think of Dick Smith’s latest business alliance? Share your thoughts in the comments section below.


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