Woolworths to sell off Dick Smith
- 31 January, 2012 11:29
Woolworths Group is looking to sell off its Dick Smith business preferring to tackle the consumer electronics market through its subsidiary retail chain, Big W.
“The future of the Dick Smith business, which is profitable, experiencing positive sales growth and has a strong brand position could be better realised through new ownership,” Woothworths said in a statement.
For now, business will continue as usual for Dick Smith, according to Woolworths CEO, Grant O’Brien.
Woolworths has already received unsolicited approaches about possible bids for Dick Smith.
It will consider the offers as well as other potential options.
The company maintained consumer electronics will remain an important category but it will focus on selling those products through its Big W business as well as its Woolworths supermarket chain.
“A divestment of Dick Smith will enable the Woolworths group to focus more investment on serving customers in its core business with a strong multichannel offer, backed with market-leading fulfilment systems and effective store network,”
As part of its strategic review announced in November 2011 it will look to “accelerating the rationalisation of the store network” by closing up to 100 underperforming stores in the next two years.