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DSH - DSHE Holdings

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Re: DSH - Dick Smith Holdings


Whatever you bought at DSH, you could of probably bought on eBay for cheaper and deliver to door.

I went into DSH the other week to get some solder. They dont sell any but they sell soldering irons. I said to the sales guy. "Huh??? How does that work? One doesn't really work without the other" he had no explanation except to tell me to go to Jaycar.
 
Re: DSH - Dick Smith Holdings

sikboy said:
Whatever you bought at DSH, you could of probably bought on eBay for cheaper and deliver to door.
Click to expand...

No, i don't buy anything without at least a 10 minute google. got exceptional value for money and easy convenient pick up, and im not Robinson Crusoe, the last purchase took some finding as the sales guy had to sort thru about 100 orders waiting to be picked up.
 
Re: DSH - Dick Smith Holdings


Therein lies the problem. They scrapped the old business over which they had a near monopoly almost completely, any actual electronics of the sort they used to sell seem to be being cleared out and most went years ago, and have failed to successfully start up what is in practice an entirely new business selling appliances in competition with many others.

Jaycar expanded and took virtually all the old Dick Smith customers and Dick Smith has then started from scratch with their new business. There's little if any carryover of customers there and no real brand value either since the business is now completely different.

At a guess, someone decided that they were only ever going to be a niche retailer with the old business. The market isn't massive and they already dominated so couldn't really grow that much. So they scrapped that and went into something else with the intent of ending up as a major mainstream retailer. The plan didn't work and now they're in trouble with no real chance of going back to the old model - firstly because someone else is now doing that (Jaycar) and second because the brand reputation is wrecked so far as that sort of thing is concerned.

Moral of the story is that if you're going to try something new then get that working before you ditch the successful business you've already got to the point where there's no going back.
 
Re: DSH - Dick Smith Holdings

I'm assuming that Christmas wasn't kind to Dick Smith Electronics at all.

Pending announcements on "debt covenants" are never nice.
 
Re: DSH - Dick Smith Holdings

Ves said:
I'm assuming that Christmas wasn't kind to Dick Smith Electronics at all.

Pending announcements on "debt covenants" are never nice.
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From what I've heard, all across retailing margins were razor thin over Christmas. DSH's sale in December has won them no friends in the industry.
 
Re: DSH - Dick Smith Holdings

McLovin said:
From what I've heard, all across retailing margins were razor thin over Christmas. DSH's sale in December has won them no friends in the industry.
Click to expand...

Gerry Harvey named that the Suicide Sale I think I remember.
 
Re: DSH - Dick Smith Holdings

poverty said:
Gerry Harvey named that the Suicide Sale I think I remember.
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What else would Gerry say... he's in competition with Dick Smith.
Suicide sale or a last ditch attempt to move old unwanted stock and pay creditors in order to keep operating.
Management a new plan or Dicks finished
 
Re: DSH - Dick Smith Holdings

That happened fast.

I always find it amusing there's always someone thinking with these stocks it's 5 PE and 12% Dividend, it's a must buy.
 
Re: DSH - Dick Smith Holdings

shouldaindex said:
That happened fast.

I always find it amusing there's always someone thinking with these stocks it's 5 PE and 12% Dividend, it's a must buy.
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I am definitely a sucker for stocks as you describe.

Trouble is sometimes they don't have crippling debt with limited stock and public announcements give no indication of the trouble they are in so on the face of it a PE of 5 is a bargain.

I don't expect GFY to have a good day today as private equity has had a hand in it as well. I really cannot see why the market is pricing it on the same level as dick smith. That said I am not convinced enough to double down.
 
Re: DSH - Dick Smith Holdings

I am not surprised this has happened. Just last year they opened a small shop in our local mall, they were too small to have all the electronic goods one could ever want. The shop was mostly empty, I went in there 6 times over the last year but couldn't find what I want.

On the other hand we also have a big Harvey Norman Store near the same Mall. I found everything I wanted in there and then some. Then I negotiated all the items I wanted to buy to prices I was more willing to pay. I ended up paying around $2,200 for my electrical goods, with software, with warranty extensions and with other extras.

Now why on earth would Dick Smith open a small shop in Mall (paying big rent) that sells very little of anything when there is a massive Harvey Norman store just up the road? I thought it was very strange when they opened that shop. Someone up the top wasn't thinking straight.

Don't worry about buying solder, they weren't even selling the soldering irons there. In fact none of the old stuff they use to sell was in there. It was like a mini electronics store with very little product lines, not enough choice.

I wonder how many more little shops they opened up like this one? A recipe for disaster.
 
Re: DSH - Dick Smith Holdings


Yes many questions with few answers.

I am working their myself - I'm hoping my pay won't get halted!

Rumours from up-top have been that suppliers have not been providing goods since early Dec. The only stuff we've been receiving are the DSE-made phone accessories. I have found myself in a number of instances where customers have come in wanting an item but I could not sell it because HQ did not stock us with it - instead I could only sell ****ty cables and phone cases

Oh well
 
Re: DSH - Dick Smith Holdings


Oh man, sorry to hear that. Mate with your skills I don't think you will have too many problems getting another job with the bigger guys. Not a nice position to be in though, hang in there, I hope it works out ok for you.
 
Re: DSH - Dick Smith Holdings


Sorry to hear that waterbottle, hope everything works out OK.
 
Re: DSH - Dick Smith Holdings

McLovin said:
Sorry to hear that waterbottle, hope everything works out OK.
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+1

Easy to forget that it's not all about the investors when you're on an investment forum.
 
Re: DSH - Dick Smith Holdings

Agree Waterbottle, hope this works out for you and all the employees. Sometimes management can be such jerks, how can they stuff up a good company so badly....greed.
 
Re: DSH - Dick Smith Holdings

yeah management got a lot on their shoulders

I went in to store when they announced big sale as after a new phone, it was just junk they trying to sell, nothing of substance

went to officeworks
 
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