| Dick Smith Electronics | |
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| Type | Subsidiary |
| Founded | 1968 |
| Headquarters | Chullora, New South Wales,  Australia |
| Key people | Alvin Ng, General Manager Dick Smith (until 1982) |
| Industry | Retail |
| Products | Electronic kits, electronic components, alarm systems, landline and mobile telephones, electronic test equipment, tools, speakers, car audio, personal computers, books, antennas |
| Employees | 2000+ |
| Parent | Woolworths Limited |
| Slogan | Know-how to make it easy |
| Website | www.dse.com.au www.dse.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.
Contents |
History
The 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.
Stunts
Through the annual catalogue, wacky ads (e.g. the 'Electronic Dick') and publicity stunts (such as towing an "iceberg" from Antarctica to Sydney Harbour), the profile of Dick Smith Electronics grew. [1]
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) 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. Before telephone equipment was de-regulated in 1984, 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. 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.[2] The company continued to add to its network of small 'main street' stores in suburbs and regional cities across Australia. Today there are about 130 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 Smiths 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 and 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. The first PowerHouse store was opened in Bankstown, New South Wales in 1996. This was followed by the opening of several Sydney stores including North Parramatta, Moore Park, Macquarie Centre, Penrith, Warringah Mall, Chatswood and Macarthur Square. The first non-metropolitan store in NSW opened in Erina on the Central Coast as well as Woden in the ACT. In Victoria, there are stores at Fountain Gate, Nunawading, Preston, North Geelong, Highpoint, Carnegie, Southland and Knox City. 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 shrunk 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. Although PowerHouse stores still stock small components, tools, leads and connectors, their main emphasis is the mass markets of Harvey Norman, JB Hi-Fi and Retravision rather than the niche markets of Jaycar, Altronics or Radio Parts. 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, stores were added at Auburn, Canberra Centre, Blacktown, Springwood and Townsville.
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 1980's, the focus of the DSE brand was on phones, telephony equiptment and some comonents, 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.[3]
Outside of Australia
New Zealand
In New Zealand, Dick Smith Electronics has over 60 locations[4] including the "PowerHouse" stores The first being Hamilton then Manukau followed by Sylvia Park Auckland. Its e-commerce website uses a search engine by SLI Systems that learns from what the users search for.
United States
In 1985, the first branch was opened in the United States at 390 Convention Way, Redwood City, California. 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. Within a few years the US operation was sold. The five key executives who launched the US operation were:
- Ike Bain, President and Chief Executive Officer
- David Milson, Vice President Marketing
- Steve Hawkins, Vice President Sales
- Gary Kennedy, Vice President Purchasing
- Tony Di Bona, Chief Financial Officer
References
- ^ Just tip of the iceberg. Sydney Morning Herald (23 March 2004). Retrieved on 2007-12-09.
- ^ DSE About Us Page. DSE Ltd. Retrieved on 2007-12-19.
- ^ DSE Brand Range Search. DSE Ltd. Retrieved on 2007-12-19.
- ^ Store Locations. DSE (NZ) Ltd. Retrieved on 2007-09-17.
See also
External links
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| Supermarkets | Woolworths · Safeway · Food For Less · Flemings |
| Liquor and hospitality | BWS · Dan Murphy's · Australian Leisure and Hospitality |
| Petrol | Caltex Woolworths/Safeway |
| General merchandise | Big W |
| Consumer electronics | Dick Smith Electronics/PowerHouse · Tandy |
| New Zealand (Progressive Enterprises) | Woolworths · Foodtown · Countdown · Woolworths @ Gull |
