As Dick Smith’s bricks and mortar stores around the country liquidate stock and prepare to close their doors, the online component of the business will survive after being acquired by online electronics retailer Kogan.com.
Kogan.com will continue the Dick Smith business as an online store from June 1 after paying an undisclosed amount at auction for the acquisition that includes intellectual property, domain names and the customer database.
And while Dick Smith physical stores are closing, the online business will continue in the hands of Kogan.com CEO Ruslan Kogan who wants to keep the Dick Smith brand alive.
“Dick Smith is an iconic Australian brand and we’re thrilled to be able to keep it alive, as well as Aussie owned and run,” Kogan said.
“We will invest in building and nurturing the Dick Smith community, and honour the great legacy of this Australian business.
“I remember as a kid always visiting Dick Smith to look for parts to upgrade my computer. There is a strong history of passion in the Dick Smith community for how technology can improve our lives, and we look forward to helping make it more affordable and accessible for all.”
Ruslan Kogan explains the whole acquisition, the reason behind the purchase and the strategy to rebuild the Dick Smith brand.
What Dick Smith assets is Kogan.com acquiring?
RK: Kogan.com is buying the entire Dick Smith online business, including goodwill and brand.
Why is Kogan.com buying the Dick Smith online business?
RK: To save the legacy of this great Australian brand, by transitioning the business to an online only model, and providing Australians accessibility and affordability for the most in demand electronics products. Dick Smith is one of the most iconic Australian retail brands and we will be able to leverage the millions of dollars we’ve invested into online retail systems and architecture over the last decade to sustainably run the business.
Will Dick Smith continue as a separate brand, or will it be ported over or merged under the Kogan.com brand?
RK: The Dick Smith brand is one of the most iconic Aussie retail brands and we will operate a dual brand strategy, continuing the legacy of the Dick Smith business as a pre-eminent technology retailer.
How will you improve the Dick Smith brand?
RK: We will invest in the brand and rebuild consumer trust. We acknowledge that consumer trust takes years to build and can be damaged very quickly.
Ultimately, a brand grows when it delivers on its promises. We will work tirelessly to exceed the expectations of every Dick Smith customer with a beautiful shopping experience.
Will the Dick Smith range change under Kogan.com’s management?
RK: The Dick Smith business will transition into a more innovative, online only, business model. This will allow us to leverage digital efficiencies to provide more accessible and affordable product ranges than what Dick Smith customers may have experienced in the last few years.
The business will continue to focus on consumer electronics and appliances, offering a variety of private labels and the world’s leading brands.
The combined buying power of Kogan.com and Dick Smith will provide a compelling proposition to the world’s leading brands and suppliers. This will enable us to trade on more favourable terms and pass on those savings onto consumers.
What revenue will the Dick Smith online business add to the Kogan.com business?
RK: We are not in a position to forecast at this stage. We do know that by leveraging our existing systems and infrastructure, we are in the best position out of any retailer in Australia and New Zealand to run Dick Smith as an online only retailer. The Dick Smith online offering will soon be better than ever.
Will you make any changes to the backend of the Dick Smith online business?
RK: The supply chain will be optimised to a more innovative, streamlined business model, ensuring competition among suppliers, and logistics efficiencies, to deliver Australians the best value every day. Fulfilment will occur from distributions centres around Australia, with Aussies offered fast dispatch straight to their doors.
Do you manage Dick Smith’s online business right now?
RK: There will be a transition period during the closure of the bricks and mortar store network. Kogan.com will operate the online business from 1 June 2016.