Dick Smith takes over David Jones electronics division
From 1 October, the iconic electronics retailer will take over DJs "underperforming" electronics departments.
The deal between Dick Smith and David Jones will see David Jones' electronics departments rebranded as the somewhat clunky "David Jones Electronics Powered by Dick Smith".
The move will open a further 30 retail areas for Dick Smith, and will see the existing David Jones consumer electronics staff become Dick Smith employees. The retailer has said that all staff will be retained and retrained for the changing roles.
A statement by David Jones to the ASX noted that televisions, computers, tablets, home office, audiovisual and "other digital products" are covered by the deal, but it will not include whitegoods or small appliances.
The agreement will also include fulfilment of website orders, with Dick Smith now responsible for any online purchases made via the David Jones site.
David Jones CEO and MD Paul Zahra noted that the challenges faced by the department store's electronic category have "adversely impacted our sales and profits for a number of years now".
Our agreement with Dick Smith enables us to remove the risks associated with this business and preserve our ability to participate in the sales and profit upside that results from combining both our businesses. In effect, we have transformed what was an underperforming category in our business into a profit contributor.