Dick Smith wipes out resellers
- 13 August, 2009 12:11
- Comments 5
Dick Smith has decided to wind down its reseller business, and will not renew contracts going forward.
Existing contracts will be honoured, but following the expiry of each contract resellers will not be able to trade under the Dick Smith brand. Franchises and Dick Smith retail outlets will not be affected.
Dick Smith spokesperson, Luke Schepan, said the retailer will work with the resellers to ensure a smooth transition, and resellers were being given plenty of notice. The earliest of the contracts would not expire for a year.
“Our business has undergone a strategic review, and the results determined that the reseller business doesn’t align with our strategic plan going forward,” Schepan said.
“We’re trying to give resellers as much time as possible and we’ll be honouring all existing contracts.
“Resellers can still apply to take out a corporate account to continue to sell Dick Smith products – the exception is the resellers will not be able to use the Dick Smith brand.”
However, a NSW-based reseller, who requested not to be named, expressed disappointment in the decision.
“We got the letter a few weeks ago,” the reseller owner said. “It’s just bad luck for us – we invest hundreds of thousands of dollars into the business just to have it taken away from us.”
The announcement follows the decision by Vodafone Hutchison Australia (VHA) to bring all its 208 Vodafone-branded retail outlets in-house in June.
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Comments
Nadia Cameron
why now?
Dick Smith's decision to cut ties with approximately 30 resellers comes at a difficult time for that part of the market. And I wonder what motivated the organisation to make this choice now.
Surely there aren't any costs associated with having resellers - isn't the cost on those third-parties to pay for the rights to the name? And isn't a bigger footprint in the market be a good thing? In contrast, JB Hi-Fi is rapidly opening up more stores. Having fewer Dick Smith locations on the map means less of a presence.
I sympathise with the resellers that will now have to reinvent their businesses without the iconic Dick Smith branding. Unfortunately, I would expect several of them to be forced to close their doors.
Anonymous
Dick Smith
Jaycar sell better products at lower prices.
Anonymous
Dicksmith are in the process of removing alot of hobbyist electronics from thier range. Have you noticed that they do not use Electronics in their name anymore. Dicksmiths main opposition is JB Hi Fi.
Trevor Hall
Closing Dick Smith
I am a owner of a Dick Smith reseller store in Biloela, Queensland and I will be closing in September 2009
Anonymous
Woolworths don't like sharing anything. Expect them to open their own store nearby their ex-resellers.
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