Dick Smith has today announced that it has signed a deal with incoming Sydney Airport duty free operator Gerb. Heinemann to open seven Move-branded retail outlets across the domestic and international terminals. These new outlets are expected to generate at least $50 million in sales per year across the 6.5 years of the initial agreement.
“We are extremely excited to join Gebr. Heinemann and provide Sydney flyers with their consumer electronics needs under our innovative Move store banner, whether they are computers, tablets, audio or accessories,” said Dick Smith CEO Nick Abboud. “Customers will be able to buy the product they need at all seven locations or chose to click and collect, ordering online and picking up airside, increasing convenience and shopping experience.”
Move is the retail brand Dick Smith uses for selling youth-oriented fashionable electronics, which it dubs ‘fashtronics’. Popular product categories at Move stores include high-end headphones, designer smartphone cases and smartwatches. There are currently four Move outlets across Brisbane, Sydney and Melbourne.
“This opportunity is consistent with our strategy of achieving strong sales and profit growth through low
capital intensity initiatives such as David Jones and Move,” Abboud said.
This expansion of the Move brand into Sydney Airport fits well with Dick Smith’s much-publicised aggressive store rollout plan. The publicly listed retailer has made it clear that in a congested market with tight margins, increased store numbers are the best way to increase volume sales.
“We anticipate this initiative generating up to $50 million in sales in the first full year, at modest capital expenditure or set up costs,” continued Abboud. “Customers will benefit from Move’s innovative retail concepts and products, as well as the strong buying power associated with Dick Smith’s 380 stores, with margins anticipated to be similar to those enjoyed by the Company.
“These stores are in addition to the approximately 20 new stores we expect to open in 2015.”
Should all these outlets be opened on time, Dick Smith will have over 400 retail touchpoints in Australia across its several brands.