Retail in Asia

In Tech

Dick Smith pain is consumers’ gain

Dick Smith’s pain could be consumers’ gain in the lead-up to Christmas, with the electronics retailer preparing to kick off a "70 percent off everything" sale to clear excess stock, potentially prompting rivals to follow suit.

While a price war would be a bonanza for customers, analysts and investors fear profit margins across the AUD16 billion (USD11.66b) consumer electronics sector will come under pressure if market leaders JB Hi-Fi and Harvey Norman cut prices to protect sales and market share.

Analysts raised the prospect of an outbreak of industry-wide discounting similar to that in 2012, when the market was flooded with cheap stock after the collapse of WOW Sight and Sound and Woolworths closed 70 Dick Smith stores before selling the chain to private equity.