No wonder traditional stores are going broke
Here in Australia, the fading gasps of the traditional department stores are mixed with the outraged squeals of shops – often selling electronic goods – that were themselves once the young and daring of the retail scene. They’re the ones now old hat, made irrelevant to many consumers by the Web.
I am happy to see retail Darwinism rampantly at work: if I can buy books from overseas, the transaction conducted online, for about half of what I’d pay in Australia, then I’ll do just that. I am a trifle sad to see the disappearance of specialist local bookshops – say, motoring bookshops – but I am not so regretful that I want to pay hundreds of additional dollars out of my own pocket each year to keep them going.
But some stores are, to me, a little different.
Dick Smith Electronics started back in 1968 by the man himself, Dick.
I was five at the time so I don’t remember much about it but I do remember that by the time I was about 12, there was a Dick Smith Electronics shop close to where I lived. It sold wire, CB radios, aerials, connectors, transistors, resistors, capacitors and other electronic components. For those who liked fiddling in this area, it was better than heaven. In fact, back then, there was almost no other way of buying non-industrial quantities of electronics components.
Sixty percent of the company was sold to Woolworths in 1980, and in 1982 Woolworths took full ownership.
From that time until the present day, Dick Smith Electronics has moved more and more away from hobbyist electronics and towards commercial consumer electronics – TVs, music systems, and so on.
So for me, the incentive to walk into a Dick Smith Electronics store has gradually withered away. I buy nearly all my electronic goods online, but even as I do so, I am conscious of a tiny nagging regret that I taking my custom away from a store (now actually owned by private equity firm Anchorage Capital Partners) that served me well in my youth.
So – to today’s events.
I wanted a watch – a smart watch that would talk to my phone. I looked around online and found what I wanted. It would cost me around $160 plus postage – or, I found to my surprise, $179 at Dick Smith Electronics.
So while it would cost me a little more at Dick’s, the fact that I’d be able to try the watch on my wrist and actually look at the thing in the flesh was sufficiently persuasive to offset the additional cost.
Into the store I went – and they had one in stock. But would they let me look at it?
No!
Would they even open the box so I could try it on my wrist?
No.
FFS.
If that’s the service, what are the actual consumer advantages of buying in a retail store?
As soon as I got home, I bought the watch online for $150 plus $10 postage…
I can’t see myself ever going back into a Dick Smith store – and that’s from someone who actually has more loyalty to the chain than the vast majority of people.
No wonder these darn stores are going broke….