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Tight consumer market and pricing competition impacts Woolworths consumer electronics figures

Tight consumer market and pricing competition impacts Woolworths consumer electronics figures

In a statement to the ASX, Woolworths (ASX:WOW) blames tough market conditions for its dip in performance

A tight grip on consumer spending and last year’s Government stimulus handouts have impacted on consumer electronics spending across Woolworths-owned Dick Smith stores.

In its 2009/10 financial report, the retail giant also blames increased pricing competition, which has resulted in lower margins.

Across Australia and New Zealand, sales dipped 0.5 percent to $1.5 billion compared to the previous year, and store sales dropped 0.9 per cent in the financial year ending June 30.

Consumer electronics sales across the Woolworths business units have increased 3.4 per cent compared to the previous year, according to its statement on the ASX.

Fourth quarter sales decreased 1.5 per cent compared to the previous year.

Woolworths claims the Dick Smith store formats are outperforming older store formats.

The new layout has been achieved across 42 per cent of the 416 Dick Smith and Tandy outlets.

During FY10, 19 Dick Smith outlets and 25 Tandy stores were shut down, 40 Tandy stores were re-branded as Dick Smith and 24 new Dick Smith stores were also opened.


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Tags woolworthsannual financial reportdick smith

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