David Jones Electronics Partners with Dick Smith

David Jones, under its home electronics department, has struck a deal with Dick Smith who will already take control of the struggling store.

As announced in the Australian Securities Exchange today, Dick Smith will begin taking over David Jones’ operations effective October 1st. Under new management, the products to be sold include computers, home office equipment, television, audio visual items and other digital products. Small appliances and white goods will not be part of the arrangement.

Its front line, as well as its complete electronics inventory, that will also cover fixture and fittings, will be under Dick Smith, as well.

David Jones will still be in charge of website orders, but Dick Smith’s participation will include packing and distributing the goods to its buyers.

The brand will still employ the same principles as the rest of the department store, while Dick Smith will be paying David Jones its monthly sales. The arrangement ensures that the company will receive minimum payment yearly, even if the sales volumes are low.

According to its CEO, “‘‘Our agreement will also enable us to drive increased foot traffic into our stores and onto our webstore as we leverage the 6 million catalogues issued by Dick Smith each week.”

“The ability to combine the David Jones electronics business with our existing Dick Smith business will create critical mass which will strengthen our buying power, allowing for more competitive prices for customers.”

In line with the changes, the company will also carry a new banner with the tagline, “David Jones Electronics, Powered by Dick Smith.”