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Dick Smith (retailer)
Dick Smith Electronics Holdings Limited was an Australian chain of retail stores that sold consumer electronics goods, hobbyist electronic components, and electronic project kits. The chain expanded successfully into New Zealand and unsuccessfully into several other countries. The company was founded in Sydney in 1968 by Dick Smith and owned by him and his wife until they sold 60% to Woolworths in 1980, and the remaining 40% two years later.
In 2012, Dick Smith had 263 stores around Australia. It also had 62 stores around New Zealand, including 20 in Auckland.
The company closed all of its stores in 2016, four years after its acquisition by Anchorage Capital Partners, though the Dick Smith brand name continues as an online brand operated by Kogan.com.
The business started in 1968 in a small $15-rent-per-week premises in a car park in the Sydney suburb of Neutral Bay with a total capital of only $610. Initially, the business focused on installing and servicing car radios. In 1969, the business's success required it to move to bigger premises, first Atchison Street, St Leonards, later Carlotta Street, Artarmon with flagship store nearby, on the Pacific Highway, Gore Hill.
When the entire electronics business landscape was remodelled by the Whitlam government's across-the-board 25% tariff cut in 1973, for the loss of 138,000 manufacturing jobs, Smith moved with the market and met the competition with a re-emphasis on imported electronic components and finished products. Alongside the car radio business, he opened "Dick Smith Wholesale". The business catered to electronics hobbyists, meeting a need Smith had felt. In those days, hobbyists could buy components only from larger wholesale companies better set up for dealing with commercial customers. After touring overseas electronic stores to study modern merchandising methods, Smith introduced self-serve shopping, a breakaway from the longstanding counter-sales setup found in component sales at the time, and produced an annual mail-order catalogue with a substantial data section.
The company promoted itself with wacky-style and Smith's own publicity stunts. For example, Smith claimed that he would tow an iceberg from Antarctica to Sydney Harbour, cut it up into small bits and sell it for 10 cents a cube. On the morning of 1 April 1978, it appeared as if he had succeeded as hundreds of phone calls reporting the iceberg began flooding into local newspapers and radio and television stations, most of which were from Dick Smith employees. The "iceberg" turned out to be a barge cloaked in white plastic sheeting and topped with firefighting foam, an April Fool's joke.
The company profited 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 at the end of the 1970s, Dick Smith Electronics thrived on exploding PC sales and its established electronic components and kit lines.
To ensure almost every electronic enthusiast in Australia had one of his catalogues, it was included free in the popular electronics magazines Electronics Australia and Electronics Today International. The catalogues included ever-increasing amounts of data on electronic components, which helped make it an essential reference for anyone involved in electronics professionally or as a hobby.
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Dick Smith (retailer)
Dick Smith Electronics Holdings Limited was an Australian chain of retail stores that sold consumer electronics goods, hobbyist electronic components, and electronic project kits. The chain expanded successfully into New Zealand and unsuccessfully into several other countries. The company was founded in Sydney in 1968 by Dick Smith and owned by him and his wife until they sold 60% to Woolworths in 1980, and the remaining 40% two years later.
In 2012, Dick Smith had 263 stores around Australia. It also had 62 stores around New Zealand, including 20 in Auckland.
The company closed all of its stores in 2016, four years after its acquisition by Anchorage Capital Partners, though the Dick Smith brand name continues as an online brand operated by Kogan.com.
The business started in 1968 in a small $15-rent-per-week premises in a car park in the Sydney suburb of Neutral Bay with a total capital of only $610. Initially, the business focused on installing and servicing car radios. In 1969, the business's success required it to move to bigger premises, first Atchison Street, St Leonards, later Carlotta Street, Artarmon with flagship store nearby, on the Pacific Highway, Gore Hill.
When the entire electronics business landscape was remodelled by the Whitlam government's across-the-board 25% tariff cut in 1973, for the loss of 138,000 manufacturing jobs, Smith moved with the market and met the competition with a re-emphasis on imported electronic components and finished products. Alongside the car radio business, he opened "Dick Smith Wholesale". The business catered to electronics hobbyists, meeting a need Smith had felt. In those days, hobbyists could buy components only from larger wholesale companies better set up for dealing with commercial customers. After touring overseas electronic stores to study modern merchandising methods, Smith introduced self-serve shopping, a breakaway from the longstanding counter-sales setup found in component sales at the time, and produced an annual mail-order catalogue with a substantial data section.
The company promoted itself with wacky-style and Smith's own publicity stunts. For example, Smith claimed that he would tow an iceberg from Antarctica to Sydney Harbour, cut it up into small bits and sell it for 10 cents a cube. On the morning of 1 April 1978, it appeared as if he had succeeded as hundreds of phone calls reporting the iceberg began flooding into local newspapers and radio and television stations, most of which were from Dick Smith employees. The "iceberg" turned out to be a barge cloaked in white plastic sheeting and topped with firefighting foam, an April Fool's joke.
The company profited 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 at the end of the 1970s, Dick Smith Electronics thrived on exploding PC sales and its established electronic components and kit lines.
To ensure almost every electronic enthusiast in Australia had one of his catalogues, it was included free in the popular electronics magazines Electronics Australia and Electronics Today International. The catalogues included ever-increasing amounts of data on electronic components, which helped make it an essential reference for anyone involved in electronics professionally or as a hobby.