Dick Smith Electronics
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| Dick Smith Electronics | |
|---|---|
| Type | Subsidiary |
| Founded | 1968 |
| Headquarters | Chullora, New South Wales, |
| 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.
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After finding that installing two-way radios didn't pay, Dick Smith moved into electronic components and do-it-yourself project kits in the 1970s. After touring overseas electronic stores to study modern merchandising methods, he 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.
Through the annual catalogue, wacky ads (e.g. the 'Electronic Dick') and publicity stunts (such as towing an "iceberg" from Antarctica to Sydney Harbour),[citation needed] the profile of Dick Smith Electronics grew. [1]
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)[citation needed] 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.[citation needed]
Before telephone equipment was de-regulated in 1984,[citation needed] 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.[citation needed] Soon after, the market was de-regulated so that anyone could buy an approved phone and plug it in.
Dick Smith sold the company to Woolworths in 1982.[citation needed] 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,[attribution needed] in some ways a similar business but with a more consumer focus and a small range of over-priced components in bubble-packs.
As it turned out Dick Smith/Woolworths ended up purchasing its arch-rival Tandy in 2001-2002.[citation needed] Almost every radio buff owned a 'Realistic' speaker, CB, scanner, or shortwave radio at one time.[dubious ] After rapid growth in the 1970s and 1980s, Tandy stagnated and suffered management problems at its USA headquarters.[citation needed] With the takeover, some Tandy stores were closed while others became Dick Smith. Both Dick Smith and Tandy have overlaps in their product range and you will see many DSE items in Tandy outlets.
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 open 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 stores in NSW opened in Erina on the Central Coast and Woden in Canberra.
In 2007, the NSW/ACT region welcomed Auburn, Canberra Centre and Blacktown to the list of the stores.
In Victoria, there are stores at Fountain Gate, Nunawading, Preston, North Geelong, Highpoint, Carnegie, Southland and Knox City.
In 2007 stores opened at Springwood and Townsville in Queensland.
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. The main benefit of these smaller stores is their number; while most enthusiasts prefer rivals[citation needed] such as Jaycar and Altronics these rivals have far fewer outlets than Dick Smith so are less convenient. 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.
It must be said[attribution needed] that the shift in focus of the whole company away from practical electronics is a consequence of two factors. The first 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.[citation needed] Second, there are the aspirations of its owner, for whom gross turnover and profit are king. No matter how "good" the company is in terms of supporting enthusiasts, high turnovers cannot be sustained from a niche market. Hence the push to appeal to 20 million Australians as opposed to 200,000 electronics enthusiasts, or less than 20,000 radio amateurs. Though some have regretted these changes, they seem to have had the desired effect, with Dick Smith and PowerHouse major contributors to the health of the Woolworths Limited company.
In New Zealand, Dick Smith Electronics has over 60 locations[2] 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.[citation needed]
In 1985, the first branch was opened in the United States at 390 Convention Way, Redwood City, California.[citation needed] 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.[citation needed]
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
| This article needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (September 2007) |
- ^ Just tip of the iceberg. Sydney Morning Herald (23 March 2004). Retrieved on 2007-12-09.
- ^ Store Locations. DSE (NZ) Ltd. Retrieved on 2007-09-17.
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