Off with Dick?s head: 189 stores set to close
Woolworths? strategic review of Dick Smith is drawing to an end, and CLSA analysts predict 189 of the retailers? 386 stores could close as a result.
Parent company Woolworths is reviewing the electronics retailer due to underperforming sales, and CLSA analysts believe the best option is to reduce store numbers.
"We believe that Woolworths will close up to 189 stores (out of 386) that are deemed unviable and invest significant effort in pursuing an online strategy to support the 'bricks and mortar' presence," analysts David Thomas and Richard Barwick wrote in a report entitled "Off With Dick's Head".
"While some may see this as a band-aid measure, we believe it will give Woolworths an ability to improve profitability, continue to be a relevant player in consumer electronics and allow it to minimise the initial liability-writedown,? the report read.
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