Electronics retailer Dick Smith marked the first weekend in December by slashing prices across the board in a bid to raise such much needed cash prior to Christmas.
As reported by SmartCompany last week, Dick Smith was preparing to launch a “70% off everything” sale last week after the retailer wrote down the value of its inventories by 20% or $60 million days earlier.
Dick Smith kicked off its “mammoth clearance sale” on Friday morning, advertising up to 70% off selected televisions and audio products on its Facebook page.
The in-store only sale also includes between 40-60% off fitness, GPS, printing and toy products; between 30-60% off Samsung clearance smartphones; between 40-60% off clearance Samsung tablets.
There will also be 30-70% off Blu-ray players and personal video recording clearance lines; between 25-40% off Windows 8 computers and 70% off selected gaming accessories.
At the same time, Dick Smith’s online store is currently advertising a “Christmas 48HR sell-a-thon”, with discounts on tablets, laptops, smartphones, gaming accessories and Christmas decorations.
The pre-Christmas clearance sales come as the S&P Dow Jones announced on Friday Dick Smith Holdings will be removed from the ASX200 after close of trade on December 18.
Speaking to SmartCompany last week, retail expert and LZR managing director David Gordon said a 70%-off sale would be “such a dramatic comment that the assumption is Dick Smith has far too much stock or a cash crisis”.
“That 70% potentially opens up a number of fundamental questions relating to the short-term health of the business,” he said.
“Discounting is a short-term answer to whatever issues they are facing.”
SmartCompany contacted Dick Smith but did not receive a response prior to publication.