none

DICK SMITH ONLINE SCOOPED UP BY KOGAN

17-03-2016
by 
in 

Dick Smith himself has said that he understands Kogan is “very ethical”, and is pleased that they have moved in to save the struggling retail brand.

The balance goes both ways, however, and people can’t seem to make up their minds about this acquisition. Some people are optimistic; others, not so much.

Importantly, Dick Smith is firmly in the optimistic camp, believing that the damage done to the brand has been the fault of previous owners (such as Anchorage), and not the brand itself.

Anchorage purchased Dick Smith for $20 million in 2012, and then floated it on the stock market for $520 in 2013: a move that was not well received.

“It’s just common sense,” said Dick Smith. “It something is worth $90 million one moment, it cannot be worth $500 million 18 months later when there’s been no change.”

Kogan has only purchased the online portion of Dick Smith, planning to leverage the quality and buying power of the brand to revitalize sales in the online market.

This does mean that much of the Dick Smith workforce will still find themselves out of work. Kogan’s own online platform is already largely automated, and declarations that the entrepreneur aims to make his business “more efficient” indicate that same level of automation may be put to work running  DickSmith.com.au.

 

Related news & editorials

  1. 11.02.2019
    11.02.2019
    by      In
    Alic Knispel knew the meaning of hard work and the value of a dollar. In fact, in 1933, he jumped on his pushbike and rode 227km from Adelaide to Moorook in South Australia’s Riverland just to get a job.
    As a young man, he toiled hard and saved fastidiously for many years to save up enough to buy a... Read More
  2. 06.02.2019
    06.02.2019
    by      In
    Brian Hughes’ journey as Managing Director of Composite Materials Engineering (CME) has spanned three decades. With a continued focus on diversifying as much as possible, the business has always “tried not to be in one business or one market all the time,” he says.
    This has seen CME dabble... Read More
  3. 04.02.2019
    04.02.2019
    by      In
    When you think of staircase construction, the first things that come to mind are traditional trades, such as carpentry and metalwork – but one forward-thinking manufacturing business that has been crafting staircases since 1971 has taken innovative steps to futurise its business with the use of... Read More
  4. 04.02.2019
    04.02.2019
    by      In
    Microbreweries are an expanding part of the Australian food and drink manufacturing sector. However, because of their scale, they face a dilemma on how to keep production levels rising while capping costs.
    For those of us who love the amber nectar, the plethora of beers has never been greater. Many... Read More