Emerging Stars Symposium
Nick Abboud
Managing Director & CEO 8 October 2015
Growth Strategy - designed to deliver sustainable results
Store growth
15-20 new stores p.a. under Dick Smith and MOVE banners. Upside potential with Duty Free
Formats
New formats such as MOVE and Duty Free considerably expand our demographic reach
Online
Convenient shopping opportunity leverages store network to maximise 'disrupter' benefits
Private Label
Differentiated product offering provides strong value proposition
Mobility
Center piece of connectivity with strong replacement cycle
New categories
Fitness & wearables and Small Appliances improving halo effect
Cost control
Continued focus on driving lower cost to serve part of our DNA
Further opportunities across business. Will maintain store productivity
Store Growth - leveraging largest store network
Fastest growing consumer electronics retailer with largest number of stores
Since IPO, opened 70 stores (net) with 393 conveniently located stores in Australia & NZ
Sustainable network of 420-430 stores by FY2017, with 15-20 new stores opening annually
Will (and have) closed stores where dynamics not sustainable
NZ network profitable. Strong focus on 5 year outlook before re-signing leases
FY15
As at 30 September
As at 30 September 2015
Australia
28-Jun Opened Closed Total NT
3
Electronics Powered by DS
28
0
0
28
WA
66 5 3
MOVE
10
1
0
11
36 1
SA
MOVE by Dick Smith
4
0
0
4
21
3
1
NSW and ACT
Dick Smith 289 0 1 288
QLD
331 1 1 331
91 13 3 4
New Zealand
Dick Smith 62 0 0 62
62 0 0 62
1 1 393
TOTAL 393
350
28
11
64 VIC 6 4
7
TAS
4
62
NEW ZEALAND
Dick Smith
Competitive advantage remains location and service
Full range of sought after brands across the network
Major retailer of Apple, Samsung, Oppo, Go Pro & Fitbit
Range enhancements attracting a more balanced customer mix
Improved attractiveness to non-traditional customer
through fitness and small appliances
Increasingly able to leverage this foot traffic into
purchases within the 'traditional' Dick Smith range
Computers, phones and accessories biggest sellers
Strong growth in Fitness & TVs
Move
Achieving critical mass, with 12 stores in Australia (including recent store openings )
Audio, Fitness and Accessories the biggest selling items
Achieving business case expectations, with sales maturation expected to be 3 years
Male
Dick Smith
Older
Duty Free
Move
Younger
David
Jones
Female
Duty Free (MOVE by Dick Smith)
Caters to travellers of all age groups
4 locations at Australia's premier tourist gateway
Move into premier location in December 2015 as part of new terminal layout
Featuring key core categories: Mobility, Office, Entertainment & Accessories
Audio, Fitness and Accessories the biggest selling
items
Performance since taking over in February 2015 ahead of our $50m annual sales guidance
Electronics Powered by Dick Smith
Focus on a more affluent female customer
Key products include Apple, large format TVs, Bose
Online sales doubled to more than 8% of retail sales
One of Australia's leading omni-channel retailers
Well placed to achieve 10% of sales online by FY2017
Comprehensive omni-channel platform integrating multiple sites
DS AU & NZ; David Jones; MOVE; eBay; Catch of the Day; Westfield, Trade Me & Groupon
Driving online customer base into in-store repeat sales
WA 20
NT
3
SA 12
QLD
35
As at 30 September 2015
Sustainable competitive advantage
Leveraging Australasia's largest consumer electronics store
network
Lower freight, fulfilment costs and speedier delivery
Pay & Collect available in all stores
allows staff to up-sell and attach on approx. 50% of online sales
Store fulfilment from 210 locations
Expanding to over 300 before Christmas
Further enhancement opportunities in driving attachment
NSW and ACT
62
43 VIC
31
4
TAS
Private Label penetration >12.5% of sales
TVs, Audio & MOVE accessories enjoyed strong growth
Good, Better, Best ranging attracting customers
Pricing hierarchy of premium MOVE range
resonating well with customers
40% increase in product range, reflecting consumers' strong desire for quality Private Label
Well placed to benefit from fall in AUD
Strong stock levels of non-aging product
Lower pricing to national brands - mix shift
beneficiary
On track to drive penetration to >15% of sales by FY2017
Mobile phones to increasingly be the center of consumer connectivity
Dick Smith is well placed to provide customer needs
Only major retailer offering prepaid options across all major networks in Australia
Continue to grow market share
Strong share in prepaid and unlocked (sim free) phones
New product accessibility benefited outright sales & prepaid
Post-paid performance consistent with expectations
Attractive longer-term category
New categories - 'Connected Home by Dick Smith'
The 'Connected Home by Dick Smith' rolling out in 100 stores this month, leveraging competitive footprint
Access Small appliance category, worth $1.7 billion p.a. and expected to grow strongly, as it
becomes 'connected' to the internet
Ranging adjacent to fitness with ~10-15% of store footprint, replacing under-performing categories
Early days, but pleased with initial indications
Dick Smith ranging leading brands including Breville, Delonghi, Dyson, Kambrook, Nespresso and Philips
With the next generation of products, consumers will be able to operate small appliances in the home directly from their electronic (mobility) devices
Kitchen Appliances Processers Mixers
Blenders
Beverage Coffee Kettles Juicers
Electrical Cooking
Fryers Rice Cookers Slow Cookers
Toasters Microwaves
Seasonal
Fans
Electric Heaters
Linen Care
Irons
Steam Stations
Floor Care Vacuum Cleaners Steam Mops
Where we are Where we will be
Launched Dec '14
-
-
-
-
Omni-channel triggered campaigns
Advanced segmentation & analytics Depth of customer data
Partnerships with key brands for post-purchase marketing
Target
Over 2 millionMembers by June 2016
- Instore signup
Email receipts
- Facebook custom audiences
Triggered campaigns for online
customers
10%
Dick Smith categories
16%
Office
6% Mobility
11%
Entertainment
11%
Home solutions
9% 14%
5% 10%
4% 9%
10%
9%
8% 12%
3% 8% 8%
7% 10%
2% 7% 7%
1% 6% 6%
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16 TD
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16 TD
6% 8%
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16 TD
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16 TD
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16 TD
0% 5% 5%
Continue to grow share in key categories
Reduced computer promotional activity kept share flat
Strong tablet growth
Growing share through unlocked, contracts
Audio (particularly headphones) driving above industry growth
Fitness growth 2.5x market
Navigation & cameras de- emphasis continues
Source: GfK Retail Management Australia Summary. 1Q16TD is July & August
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