By Patrick Avenell
SYDNEY, NSW: Dick Smith Electronics has reported an almost 10 per cent surge in sales over the 2009 financial year, with general manager Debra Singh attributing the growth to the reinvigoration of the Dick Smith brand.
The raw sales result shows that Dick Smith stores in Australia and New Zealand turned over $1.537 billion in sales for the year to 30 June 2009. This is an increase of $110 million on the FY2008 figure. This represents a 9.6 per cent increase on the previous year. There was also growth in the Woolworths’ Indian consumer electronics business, with sales growing from $104 million to $187 million.
“This pleasing sales result demonstrates the increased consumer acceptance of our refreshed Dick Smith offer in Australia,” said Singh. “The 77 new format stores completed in the year continue to achieve sales growth in excess of the rest of the network.”
On a quarter by quarter breakdown, the importance of Christmas spending to the consumer electronics industry is highlighted. According to the results released to the Australian Securities Exchange, Dick Smith sales actually went backwards in some markets during Q1 and Q4 of FY2009. But in Q2, which houses Christmas, and Q3, when the Government’s stimulus package began to be realised, sales surged 11.6 per cent and 10.9 per cent respectively.
Woolworths CEO echoed Singh in declaring FY2009 a success.
“Despite the global economic turmoil, 2009 has been a successful year with solid results across our business overall,” he said. “Continued sales growth in…discretionary areas like…consumer electronics…highlights the underlying strength of the Australian economy in these times.”