Dick Smith going strong despite shut down

Woolworths posts FY2012 figures.

Supermarket chain Woolworths has reported an increase in consumer electronics sales for its fiscal year 2012, just months after announcing plans to wind down its struggling Dick Smith consumer electronics brand.

Woolworths today announced to the ASX a company-wide sales increase of just under 4 percent for the full year 2012, bringing the group’s total sales to $56.7 billion for the period, including the discontinued Dick Smith chain.

That brand alone saw a 2.3 percent rise in sales to $1.5 billion.

The supermarket giant cited store closure sales, clearances and promotional campaigns such as “Dick Does” and “Cheapest Ever” as reasons behind the growth.

52 Dick Smith stores have been closed so far this year, following the company's declaration in January it would shut 100 of 386 underperforming Dick Smith stores across Australia and New Zealand over the next two years through a staged restructure. 

348 stores currently remain in operation, however Woolworths is still looking to sell off the business. 

Several parties have expressed interest in acquiring the brand but Woolworths is yet to officially announce potential buyers.

In March, Woolworths revealed the divestment and restructure of the failing Dick Smith brand had cost it $217 million. 

A November 2011 review into the Dick Smith business found investment in the brand was disproportionate to its profitability.

Woolworths’ stock rose 1.12 percent to $27.90 immediately following today's the announcement. 

Woolworths did not respond to request for comment by the time of publication.