Following the announcement that the operations of electronics retailer Dick Smith would be wrapped up in the coming months, and over 360 stores on both sides of the Tasman would be closed, many are left wondering what happened. The extent of the woes at the once iconic retail chain came to light in January when it was announced that administrators had been appointed, but after an unsuccessful sale period, the company is now being liquidated.
While conditions in the retail sector have become more difficult in the face of rising online shopping options, the founder of the business – which still bears his name – feels that the failure of the company comes back to a problem of strategy.
The wrong approach for the times
While not actually owning the business for decades, Australian businessman Dick Smith is understandably upset about the demise of his iconic namesake brand. Speaking to the ABC in Australia, Mr Smith blamed the ongoing financial issues leading to the collapse on a flawed, overly aggressive expansion strategy across the company since it came under new ownership in 2012.
“When it was changed to a consumer electronics business it probably could remain viable with 100 shops,” he said. “But when you have the utter greed of modern capitalism, when they opened 300 shops, basically the writing was on the wall it’s going to go broke.”
Don’t become the next Dick Smith
If there’s one lesson to be learned from the final years of Dick Smith’s operation, it’s the importance of having a conscientious strategy designed to help achieve reasonable goals. When it comes time for your organisation to chart the path forward, choosing an effective business strategy software platform can help with the implementation and monitoring of your progress towards a more successful future.