Dick Smith Electronics

Infobox_Company
name = Dick Smith Electronics

type = Subsidiary
slogan = Know-how to make it easy, That's where you go! (New Zealand)
foundation = 1968
location_city = Chullora, New South Wales
location_country = AUS
key_people = Debra Singh, General Manager
Felicity Herron, General Manager - New Zealand
Dick Smith (until 1982)
num_employees = 2000+
industry = Retail
products = Electronic kits, electronic components, alarm systems, landline and mobile telephones, electronic test equipment, tools, speakers, car audio, personal computers, books, antennas
revenue =
parent = Woolworths Limited
homepage = [http://www.dicksmith.com.au/ www.dicksmith.com.au]
[http://www.dicksmith.co.nz/ www.dicksmith.co.nz]

Dick Smith Electronics is an Australasian electronics retailer founded in 1968 by Dick Smith. The business started as a small car radio installation business in the Sydney suburb of Artarmon, New South Wales, and has expanded to employ over 2,000 people. It is co-major sponsor of AFL club the Richmond Tigers

History

Early days

The business started in 1968 in a small rented space below a car park in the Sydney suburb of Artarmon, New South Wales with a total capital of only $610. In 1969 the business's success required that it move to bigger premises. After touring overseas electronic stores to study modern merchandising methods, Dick Smith introduced self-serve shopping and produced a mail-order annual catalogue with a substantial data section. To ensure almost every electronic enthusiast in Australia had one of his catalogues, it was included free in the popular electronics magazines such as Electronics Australia and Electronics Today International. This catalogue continues to be produced to this day.

tunts

The company was promoted through the annual catalogue, wacky ads (e.g. the "Electronic Dick") and publicity stunts. For example Dick Smith claimed that he would tow an iceberg from Antarctica to Sydney Harbour, cut it up into small bits and sell it. However he instead towed a man-made iceberg, constructed on a barge, with a big sheet of white plastic and fire-fighting foam as an April fools joke. Fact|date=September 2007 The profile of Dick Smith Electronics grew. [cite web|url= http://www.smh.com.au/articles/2003/03/28/1048653853668.html|publisher=Sydney Morning Herald|date=2004-03-23|title=Just tip of the iceberg|accessdate=2007-12-09]

Expansion

The company profited immensely from the CB radio boom of the 1970s and by the end of the decade had stores in all mainland states. Though many CB radio stores closed when interest waned from the early 1980s, Dick Smith Electronics survived thanks to strong sales in other areas. These included its established electronic components and kit lines (thousands of people started with the 'Fun Way' series and worked their way up to assembling Playmaster amplifiers and speakers), Yaesu amateur radio (the company had secured the exclusive dealership)Fact|date=September 2007 and Uniden-Bearcat scanners.

Also important was the fast-growing personal computer market. The company sold well-known models such as the Commodore VIC-20 and Commodore 64. It also sold own-brand models, such as the System 80 which was compatible with the Tandy TRS-80 Model I, the Dick Smith Cat an Apple II clone, the VZ-200 and VZ-300.

The company was particularly innovative in its product range, especially during the 1970s and 1980s. Some such forays paid off, while others were soon abandoned. Examples of briefly-stocked items in the 1980s included Heathkit electronic kits, satellite TV receiving stations and, foreshadowing near-universal mobile phone ownership, Beeple pagers. More successful was the Dick Smith Wizzard, which earned a cult following amongst computer gamers.Fact|date=September 2007

Before telephone equipment was de-regulated in 1984,Fact|date=September 2007 Australian consumers could only have two different types of telephones in three different colours. DSE was a major source of "non-type approved" telephone equipment. A broad range of answering machines, cordless and novelty phones were offered; despite the fine print warning that they were not 'type approved', thousands were sold anyway.Fact|date=September 2007 Soon after, the market was de-regulated so that anyone could buy an approved phone and plug it in.

The Woolworths takeover and range changes

In 1980, the company had grown to 20 stores and the company's working capital was so much that he sold 60% of the company's working share to Woolworths Limited. Dick Smith sold the balance to Woolworths in 1982 who took full ownership of the company. [cite web | title = DSE About Us Page | publisher = DSE Ltd | url = http://www.dse.com.au/cgi-bin/dse.filereader?+EN/catalogs/INS0001611 | accessdate = 2007-12-19 ] The company continued to add to its network of small "main street" stores in suburbs and regional cities across Australia. Today there are about 200 company-owned Dick Smith Electronics stores, with authorised stockists in country areas.

Though the company has almost always stocked items that would appeal to the general non-technical/non-hobbyist consumer, as the years went on these items took up an increasing proportion of floor space. Die-hard enthusiasts often bemoaned that Dick Smith was becoming like Tandy, a competitor in the consumer electronics business which generally stocked non-technical/non-hobbyist ranges with a small range of over-priced components in bubble-packs.

After rapid growth in the 1970s and 1980s, Tandy stagnated and suffered management problems at its USA headquarters. Woolworths purchased Tandy in 2001-2002, so that both Tandy and Dick Smith became part of the same group. With the takeover, some Tandy stores were closed while others became Dick Smiths. Both Dick Smith and Tandy have overlaps in their product range with DSE (Dick Smith Electronics) products being available in Tandy outlets.

Powerhouse

The late 1990s saw the company establish "PowerHouse" super-stores in Sydney, Melbourne, (and later) Canberra, Brisbane. These were several times bigger than regular stores and contained departments for the main product categories and supermarket-style checkouts. PowerHouses carry a wider range of products than the smaller stores, especially in the computing, audio-visual and amateur radio areas. Installation services were offered at some stores.

Since 2002-2003 the PowerHouse concept changed to appeal to a broader consumer market and less to enthusiasts who were the company's traditional bread and butter. Component ranges shrank and general electronics books ceased to be stocked. The Yaesu dealership was relinquished, ending a 27-year partnership. Kits were packed up and transferred to the smaller stores, which still devote a corner to enthusiast electronics. Replacing the kits, books and radios are aisles of domestic products such as kettles, coffeemakers, toasters and frypans. In late 2007, PowerHouse stores also transferred many other small components, tools, leads and connectors to instead concentrate on major goods such as computers and televisions to compete with other major retailers such as Harvey Norman, Retravision and JB Hi Fi.

A major reason for the change in product range is the declining enthusiast market: with the advent of cheap pre-assembled electronics from Asia, and the trend of many technically-inclined people turning to software and gaming rather than hardware construction, kitbuilding has diminished since its heyday in the 1970s and 80s—when at one point it supported no less than four commercial magazines. In 2007, Dick Smith Powerhouse stores introduced a home installation service known as 'Power Squad' to install major items such as TV's and Computer systems or to provide set-up and training on smaller items such as wireless networks and MP3 players.

The first PowerHouse store was opened in Bankstown, New South Wales in 1996. The NSW stores include: North Parramatta, Moore Park, Macquarie Centre, Penrith, Warringah Mall, Chatswood, Macarthur Square, Erina, Auburn, Blacktown and Sydney City. There is also a proposed Castle Hill store.

In the ACT, there are stores at Woden and Canberra Centre.

In Victoria, there are stores at Fountain Gate, Nunawading, Preston, North Geelong, Highpoint, Carnegie, Southland and Knox City. Stores at Bendigo, Chadstone, Frankston and Broadmeadows are to be opened in 2008.Fact|date=August 2008

In Queensland, there are stores at Springwood and Townsville, with a store at Rockhampton to open in 2008.

The PowerHouse concept has also spread out of the eastern states with stores being recently opened at
Innaloo, Western Australia and Elizabeth, South Australia.

The DSE Brand

Dick Smith Electronics has also long been known for its 'home brand' range of electronics which fall under the brand name DSE, a commonly used abbreviation of Dick Smith Electronics. Although initially, in the 1980s, the focus of the DSE brand was on phones, telephony equipment and some components, the brand has since expanded into a large range of various electronic devices and components with less focus on telephony. In 2007 the DSE brand produced a wide range of products including portable DVD players, TV set top boxes, aerials, AV receivers and amplifiers, NiCad and NiMH Rechargeable batteries as well as alkaline and lithium batteries, digital cameras, speakers, a large range of flash memory devices, UHF radios, webcams and a large range of Ethernet, Crossover, USB, Composite AV, Component AV, 240V AC cables. [cite web | title = DSE Brand Range Search | publisher = DSE Ltd | url = http://dseau.resultspage.com/search.php?p=Q&srid=S2%2d1&lbc=dseau&ts=p2&w=dse&method=and&isort=score&srt=0 | accessdate = 2007-12-19 ]

Outside of Australia

New Zealand

In New Zealand, Dick Smith Electronics has over 60 locations [cite web | title = Store Locations | publisher = DSE (NZ) Ltd | url = http://www.dse.co.nz/cgi-bin/dse.filereader?45afeab202728448273fc0a87f33071c+EN/catalogs/INF0002131 | accessdate = 2007-09-17 ] including the "PowerHouse" stores, the first being in Hamilton, then Manukau, followed by Sylvia Park in Auckland. Its e-commerce website uses a search engine by SLI Systems that learns from what the users search for.Fact|date=September 2007

United States

In 1985, the first branch was opened in the United States at 390 Convention Way, Redwood City, California.Fact|date=September 2007 The location served as the main office, mail order center, kit assembly area and retail store. Additional stores were opened in Shattuck Avenue, Berkeley, California; Stevens Creek Boulevard, San Jose, California; and in Los Angeles.Fact|date=September 2007 Within a few years the US operation was sold.

References

ee also

*Jaycar
*Tandy (Australia)

External links

* [http://www.dicksmith.com.au/ Dick Smith (Australia)]
* [http://www.dicksmith.co.nz/ Dick Smith (New Zealand)]