Dick Smith sales boosted by new format and online

Woolworths-owned Dick Smith Electronics reported a 2.5% increase in comparable store sales in the third quarter (13 weeks to April 4), spurred by “customer acceptance” of new format stores and a stronger online presence.

The Dick Smith website was overhauled earlier this year and contributed to an overall Woolworths' group increase in "online channel sales" of 41% in the first half.

Woolworths made no mention of online sales growth in its latest sales report but previously said it “made good progress in online channel sales [in Dick Smith] in the Christmas trading period, doubling those achieved last year."

The company said CE sales in Australia in the third quarter were “challenging” as it cycled the federal government’s stimulus payments last year and experienced “tightened” consumer spending due to higher petrol prices and rising interest rates.

Woolworths’ total CE sales in Australia (which include the soon-to-be phased out Tandy and Powerhouse stores) declined 2.4% in the latest quarter.

Four new Dick Smith stores were opened in Australia during the quarter, taking the total to 426.

Comparable sales in the 121 new format Dick Smith stores were “well in excess of the network.”