A few years ago Dick Smith opened a new store opposite my newsagency in Forest Hill in Victoria. They knocked us around in the ink space. It hurt. We eventually climbed back by focusing on brands, top selling inks and excellent service. We once again did well out of ink.
We just found out that a new Dick Smith store is to open right next to another newsagency I own. It’s replacing a low-traffic entrance of a large pharmacy. The pharmacy was L-shaped and 75% or more of their traffic used the entrance away from us.
I’m glad Dick Smith is opening here. The shop will bring welcome new traffic to our part of the centre. While there will be a challenge with ink, the traffic boost will more than compensate for this. The competition will be good for us.
We expect to see a boost across all departments as a result of the additional traffic. We will leverage this by adjusting our front of store pitch to try and connect with who we expect the Dick Smith shopper to be.