NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Retail

Woolworths weighs up Dick Smith sale

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
3 Nov, 2011 04:30 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

One of the newest Dick Smith stores opened in Auckland's Queen St. Photo / Dean Purcell

One of the newest Dick Smith stores opened in Auckland's Queen St. Photo / Dean Purcell

Control of big electronics retailer Dick Smith might change hands after the Australian owner signalled a shakeup this week.

Woolworths flagged a possible sale of its big consumer electronics chain after embarking on an accelerated supermarket opening programme which will add 10,000 new jobs by next July.

Grant O'Brien, new Woolworths chief executive, this week announced a "strategic review" of the Dick Smith chain.

The retailer, which has a national presence in New Zealand, has reported a 15 per cent drop in pre-tax earnings in the past financial year.

O'Brien told the Australian Financial Review last week that Woolworths had three options for Dick Smith. "You can grow and adjust your existing business, make it bigger by acquisition or significant capital investment or you can sell."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Shareholders have been lobbying Woolworths to either expand its consumer electronics interests by taking over JB Hi-Fi, or to get out of the sector by selling Dick Smith to rivals such as JB, Harvey Norman or an overseas chain.

That prompted analyst Mark Wade of Linwar Securities in Australia to question whether Woolworths might simply sell Dick Smith. "Despite many positive changes to the Australian consumer electrical operations, performance has lagged," Wade said.

"The underperformance underscores cyclical and structural industry headwinds, such as digital migration, price deflation, price scrutiny from online and suppliers opening stores.

Advertisement
Advertise with NZME.

"In response, Dick Smith will undergo a strategic review to consider all options. Depending on the outcome, that could favour Harvey Norman and JB Hi-Fi," he said.

Francois Smith, Dick Smith's New Zealand marketing services manager, said the business had 70 stores here and was still expanding via new retail premises and new product lines.

"Absolutely, we'll continue on and there have been new stores opened. There are a few new stores in the wind which would be commercially sensitive. We are also refurbishing stores as well, so there's absolutely a growth strategy in place," Smith said, naming the Remuera Rd, Newmarket store, and those in Timaru, Porirua and Napier, as outlets that had been recently upgraded.

Dick Smith had also secured an exclusive arrangement with Amazon over its Kindle hardware, he said.

Discover more

Property

Supermarkets boost construction sector

08 Nov 04:30 PM
Retail

Kiwis making most of online bargains

16 Nov 04:30 PM
Entertainment

500th rejection slip? Upload your masterpiece to Kindle

19 Nov 02:30 AM
Retail

Dick Smith NZ pays more fees to parent

04 Jan 04:30 PM

Woolworths bought Dick Smith from its eponymous founder in two stages during 1980 and 1982. Sales in Australia and New Zealand rose from A$1.4 billion in 2008 to A$1.8 billion in 2011 but earnings before interest and tax have fallen from A$68.1 million to just A$26.8 million and the chain is under extreme margin pressure.

In New Zealand, Woolworths also owns Progressive Enterprises, which operates the Countdown supermarkets.

DICK SMITH
* Founded by Australian entrepreneur
* Owned by Woolworths for 30 years
* 70 stores throughout New Zealand
* Under margin, competition pressure
* Woolworths may sell Dick Smith

Save

    Share this article

Latest from Retail

Premium
Technology

Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

10 Jun 03:14 AM
Premium
Telecommunications

3G shutdown delay, watchdog fields multiple complaints

09 Jun 01:02 AM
Premium
Opinion

Liam Dann: Cheer up, Kiwis - and go shopping

07 Jun 05:00 PM

Why Cambridge is the new home of future-focused design

sponsored
Advertisement
Advertise with NZME.

Latest from Retail

Premium
Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

Tech Insider: $529 phone, bought in March, can only make 3G calls; IRD's AI warning; $16K Google Cloud refund

10 Jun 03:14 AM

PLUS: Elon Musk's pain is Sir Peter Beck's gain.

Premium
3G shutdown delay, watchdog fields multiple complaints

3G shutdown delay, watchdog fields multiple complaints

09 Jun 01:02 AM
Premium
Liam Dann: Cheer up, Kiwis - and go shopping

Liam Dann: Cheer up, Kiwis - and go shopping

07 Jun 05:00 PM
Premium
Supermarket crackdown: Grocery code shake-up gets mixed reaction from industry players

Supermarket crackdown: Grocery code shake-up gets mixed reaction from industry players

05 Jun 05:55 AM
Clean water fuelling Pacific futures
sponsored

Clean water fuelling Pacific futures

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP