Will Dick Smith make a comeback in NZ?

Former Dick Smith in Rotorua Central mall. Photo / Stephen Parker
Former Dick Smith in Rotorua Central mall. Photo / Stephen Parker

After shutting down stores across Australia and New Zealand, Dick Smith reemerged as an online retailer with new owner Ruslan Kogan.

Today it annouced its product range has expanded to 5000 in under four months.

"Dick Smith New Zealand has delivered on its promise of expanding it's product offering to more than 5000 products, after relaunching as an online only store in May 2016," the statement read.

"The popular and iconic brand has added thousands of products to the revamped website in the last month."

The news comes as former executives of Dick Smith are before an inquiry in Australia where it has been revealed that the downfall of the company was in part due to the hoarding of excess stock for rebates.

In 2013, following private equity firm Anchorage Capital Partners' purchase of the business from Woolworths, Dick Smith ramped up its reliance on controversial supplier rebates under the project outlined in an external review of the company's supply chain.

Giving evidence before the NSW Supreme Court on Tuesday, Anchorage managing director Phillip Cave - who represented the firm on the Dick Smith board until early last year - defended the policy of "maximising" rebates.

The court had previously heard from fellow Anchorage executive Bill Wavish, also a former Dick Smith board member, who admitted to masterminding the rebate strategy with chief executive Nick Abboud and chief financial officer Michael Potts.

"The policy started in Woolworths' time," Mr Cave said. "Woolworths' position was to maximise rebates - it was fully, clearly out there. It didn't start with us. We decided to continue."

The collapse of technology retailer Dick Smith provided a shot in the arm to New Zealand electronics chain Noel Leeming.

Its financial performance was reported on Friday as part of the annual result of its parent company, The Warehouse Group.

Noel Leeming's full-year operating profit rose 87.6 per cent to $12.1 million from $6.4m a year earlier.

Annual revenue at the 75-store chain, which The Warehouse Group acquired for $65m in 2012, rose 13 per cent to $752.1m.

Same store sales jumped 16.7 per cent in fourth quarter of the financial year.

- with news.com.au

- NZ Herald

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf04 at 22 Jan 2017 13:54:46 Processing Time: 733ms