Gebr Heinemann ties up with Dick Smith for Sydney Airport electronics business

AUSTRALIA. Gebr Heinemann has formed an alliance with local consumer technology retailer Dick Smith to run seven specialist stores at Sydney Airport.

The stores will open in February/March 2015, with an initial contract term of six-and-a-half years.

As revealed by The Moodie Report last week, Gebr Heinemann was awarded the core duty free contract at the New South Wales gateway in a big boost to its Asia Pacific expansion plans.

The consumer technology and accessory stores will be branded Move by Dick Smith and will open in seven locations at the Sydney international and Virgin domestic terminals.

Dick Smith said that it will look at further opportunities with Gebr Heinemann to expand its reach throughout Asia.

Dick Smith Managing Director and CEO Nick Abboud said “We are extremely excited to join Gebr Heinemann and provide Sydney flyers with their consumer electronics needs under our innovative Move store banner, whether they are computers, tablets, audio or accessories.

“Customers will be able to buy the product they need at all seven locations or chose to click and collect, ordering online and picking up airside, increasing convenience and shopping experience.

“This opportunity is consistent with our strategy of achieving strong sales and profit growth through low capital intensity initiatives such as David Jones and Move.

“We anticipate this initiative generating up to A$50 million (US$47 million in sales in the first full year, at modest capital expenditure or set-up costs. Customers will benefit from Move’s innovative retail concepts and products, as well as the strong buying power associated with Dick Smith’s 380 stores, with margins anticipated to be similar to those enjoyed by the Company. These stores are in addition to the approximately 20 new stores we expect to open in 2015,” Abboud said.

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