Electronics retailer, Dick Smith, has entered a Retail Brand Management Agreement with Australian department store, David Jones, which will see it operate the electronics department in 30 of the latter’s stores across the country.
This is the second phase of Dick Smith’s new Australian and New Zealand (A/NZ) growth strategy, which was unveiled earlier this month. The first phase includes the opening of 77 new stores across the region over the next three years.
The partnership will see launch of ‘David Jones Electronics powered by Dick Smith’ in select department stores from October 1, adding to the retailer’s footprint of 326 stores in A/NZ. The concept will have a strong focus on accessories, but will also feature higher-end, “more aspirational technology” to suit David Jones’ customer demographic.
Dick Smith will also continue to roll-out its branded Samsung, Sony and Apple ‘store-in-store’ concepts within the David Jones stores.
“The RBMA entered into with David Jones is the best 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 A/NZ,” Dick Smith A/NZ CEO, Nick Abboud, said.
“Forming strategic partnerships with like-minded companies is integral to our growth strategy. 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.”
Abboud also said the agreement strengthen’s his company’s buying power, which enables more competitive pricing for customers in both stores.
According to a statement, Dick Smith will retain all existing David Jones consumer electronics staff and provide them with the appropriate training and support to fulfil their new roles.