Dick Smith’s Move consumer electronics is to open seven stores in joint venture with Gebr. Heinemann at Sydney Airport from next February/March.

 

The electronics specialist says it is hoping that its new stores will reach a sales turnover of $50m or more in the first-year in the Sydney International and Virgin domestic terminals, where its contract term will run from initially for six and a half years.

 

This news follows yesterday’s announcement that Gebr. Heinemann has won the duty free contract at Sydney Airport [click here for details: http://www.trbusiness.com/index.php/regional/asia/15904.html]. It also marks the beginning of a new partnership between the two retailers and a new electronics player in the travel retail industry, with Dick Smith confirming that it will look at further opportunities with Gebr. Heinemann to expand its reach throughout Asia.

 

 

PURCHASING OPTIONS

Commenting on the new development, Nick Abboud, Dick Smith’s Managing Director and CEO, said: “We are extremely excited to join Gebr. Heinemann and provide Sydney flyers with their consumer electronics needs under our innovative Move store banner, whether they are computers, tablets, audio or accessories.

 

“Customers will be able to buy the product they need at all seven locations or chose to click and collect, ordering online and picking up airside, increasing convenience and shopping experience. This opportunity is consistent with our strategy of achieving strong sales and profit growth through low capital intensity initiatives such as David Jones and Move.

 

“We anticipate this initiative generating up to $50m in sales in the first full year, at modest capital expenditure or set up costs. Customers will benefit from Move’s innovative retail concepts and products, as well as the strong buying power associated with Dick Smith’s 380 stores, with margins anticipated to be similar to those enjoyed by the company. These stores are in addition to the approximately 20 new stores we expect to open in 2015”, said Abboud.

 

TOP IMAGE: Sydney Airport.