Disruptive sale begins as retailer falls off ASX register.
TVs, audio and Blu-ray players are marked-down by 70%, Samsung smartphones and tablets by 60%, computers by 40% and ink cartridges by 80% in an extraordinary sale by Dick Smith to clear massive stock and claw back revenue.
The Clearance Sale which was launched this morning on social media is only available in store. However, when Appliance Retailer reporter Emily Bencic visited our local store in Sydney’s busy Broadway precinct just hours after the doors opened this morning, she discovered less than a handful of customers.
The deals Appliance Retailer detected included selected Samsung tablets and Swann security systems up to 60% off, selected Philips personal care items including epilators and shavers, less than $30, all Sony PlayStation Vita and Wii software was reduced to clear at $5. Selected TDK in-ear headphones were reduced to as little as $6, while Lavazza coffee capsules were down to just $3 and Breville benchtop appliances were on sale for under $100.
Meanwhile on social media, Dick Smith’s Online Help Desk manned by ‘Amanda’ is fielding a flurry of activity on its Facebook Page.
Here is a transcript of one conversation posted this morning.
‘Franchise Leaders’: Not one of your stores that I called in the last hour in Melbourne had any TVs at 70% off..despite you posting this ad an hour ago – can you tell me where I can find the 70% off tvs?
Amanda: Stores cannot hold stock. But they will honour all sales if they have stock available. I will PM you.
Direct competitors JB Hi Fi and Harvey Norman have yet to respond to Dick Smiths sale although JB has launched a ‘Christmas Gift Frenzy’ with computers discounted by 15% and Blu-ray down by 20%.
Cut off ASX
This morning Dick Smith was dealt another blow when it lost its spot in the Australian share market’s list of top 200 companies. On December 18, the retailer will be one of seven companies to be cut following the quarterly review of the benchmark S&P/ASX200 index, with energy firms Paladin and Drillsearch, mining and materials group Arrium and environmental consultant Cardno also on the way out.
Dick Smith’s share price has tumbled more than 80% after it shocked investors with profit warnings following disappointing October and November sales. After rising briefly during the week, Dick Smith shares have fallen again today to 38 cents.