Strong dollar deflates Dick Smith results

Dick Smith's parent company Woolworths Limited has reported 4.1 percent growth in the consumer electronics business in its first quarter results ending October 3, 2010.

Compared to the previous corresponding period, consumer electronics in the Australian business increased 0.9 percent. In New Zealand it declined 2.3 percent. Growth remained strong in India. 

Woolworths said the consumer electronics result was impacted by tightened consumer spending in Australia, increased price competition and price deflation, which was exasperated by the strong Australian dollar.

But Woolworths managed to open 17 Dick Smith shops in Australia and New Zealand and refurbished three.  

Woolworth's $13.9 billion first quarter sales - including petrol and liquor - allowed chief executive officer Michael Luscombe to state that the period was “a solid start to the financial year". It grew by 4.1 percent compared to the corresponding period.

But he also said the market “continued to hold underlying challenges for the retail sector.”

Tandy and larger format Powerhouse stores are being phased out and rebranded as Dick Smith.