Dick Smith has outlined its priorities in an investor presentation, highlighting plans to open more stores and increase the overall percentage of sales from online and its private label products.
The presentation notes from the Goldman Sachs Conference state that 53 new stores will be opened in FY14 bringing the total number of Dick Smith stores to around 400 by FY15 across Australia and New Zealand.
So far this financial year, Dick Smith has opened 16 new Dick Smith stores (there are 278 in total), four new Move ‘fashtronics’ stores and 31 David Jones Electronics Powered by Dick Smith stores, however two have closed meaning there are 29 in total.
Currently the company has a total of 311 stores in Australia and 61 in New Zealand. It plans to bring that number to about 400 by FY15 and potentially 450 beyond that.
Some of these numbers will be made up by expanding Move, with the company stating there is potential to open up to 30 stores. Dick Smith anticipates that Move, which targets young affluent females and males, will generate around $2 million in annual store sales from a 160m2 trading footprint this financial year.
Dick Smith is also focusing on its private label products. Currently private labels make up 11 per cent of sales, and with new ranging decisions this is forecast to grow to 15 per cent over three years.
Online sales make up 5 per cent of Dick Smith’s sales, this figure is expected to grow to 10 per cent over the next three years.