Dick Smith Australia wipes out resellers

Dick Smith Australia wipes out resellers

Dick Smith has decided to wind down its reseller business, and will not renew contracts going forward. Existing contracts will be honoured, but following the expiry of each contract resellers will not be able to trade under the Dick Smith brand. Franchises and Dick Smith retail outlets will not be affected. Dick Smith spokesperson, Luke Schepan, says the retailer will work with the resellers to ensure a smooth transition, and resellers were being given plenty of notice. The earliest of the contracts would not expire for a year. “Our business has undergone a strategic review, and the results determined that the reseller business doesn’t align with our strategic plan going forward,” says Schepan. “We’re trying to give resellers as much time as possible and we’ll be honouring all existing contracts. “Resellers can still apply to take out a corporate account to continue to sell Dick Smith products – the exception is the resellers will not be able to use the Dick Smith brand.” However, a NSW-based reseller, who requested not to be named, expressed disappointment in the decision. “We got the letter a few weeks ago,” the reseller owner said. “It’s just bad luck for us – we invest hundreds of thousands of dollars into the business just to have it taken away from us.” Dick Smith NZ country manager James Cunnold says it has been working through its strategy with regards to resellers. “We only have two local resellers and some time ago we decided that we wouldn’t continue those contracts. I believe those contracts are due to expire in February.”

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