Former Dick Smith stores looking for love

Dozens of stores that were once home to failed electronics retailer Dick Smith are still searching for new tenants.

A realcommercial.com.au property search shows many former Dick Smith stores across Australia are currently lying vacant, after the last of the company’s outlets closed their doors on May 3.

Dick Smith collapsed earlier this year and was placed into administration, just two years after it was floated onto the stock exchange, forcing the closure of hundreds of stores across the country.

And while leases on many of Dick’s Smith’s larger stores have been filled by well-known retailers, including JB Hi-Fi, which moved into four stores at Sydney International Airport, smaller outlets in most states are still to find new tenants.

The Dick Smith store in Shepparton is among those up for lease.

In New South Wales, stores in Armidale, Dubbo, Coffs Harbour, Ashfield Mall and Port Macquarie are among those on the leasing market.

The vacancies in Victoria include retail outlets in Dandenong, Echuca, Traralgon, Shepparton, while Queensland has stores in Mermaid Beach, Nambour and Caloundra.

An opportunity also exists in St Mary’s, South Australia, while Western Australia has stores available in Morley and Centennial Park.

Steven Black from Retail Direct Property Group, which is handling the lease of Dick Smith’s former Mermaid Beach store at 2563 Gold Coast Highway, says he has already fielded interest from food retailers, as well as other groups interested in splitting the property in two.

Mermaid Beach’s former Dick Smith store is attracting interest from food retailers.

“There’s been a handful of parties that have made enquiries for the whole space,” Black says.

“You’re sort of sitting in between that large format and retail world, because it is a retail-zoned site but it would also appeal to large format operators as well.”

“A lot of the interest has been towards getting us to split it, which we may consider if we can get the right outcome for it.”

Burgess Rawson’s Sophie Cunliffe, who is marketing the former Dick Smith store at Armidale in New South Wales, says other national brands are specifically targeting Dick Smith showrooms.

“Several national tenants have contacted us directly and I certainly think the fact that they are ex-Dick Smith stores helps,” Cunliffe says.

Dick Smith’s Armidale store is attracting attention from other major retailers.

“Some retailers are looking specifically for these sites. They’re generally in great locations – this one is. It was a purpose-built store next to Dan Murphy’s. Ample parking, main street location, all those sorts of things, and just an easy … showroom that can convert for these retailers.”

Meanwhile, health and beauty chain Priceline was quick to swoop on Dick Smith’s former flagship Adelaide store, taking out a seven-year lease with an option for a further five years.

The 535sqm space at 55 Gawler Place, near Rundle Mall, attracted heavy interest when it hit the market.

CBRE associate director Julia Pottenger negotiated the lease and says big name retailers began circling prime Dick Smith locations as soon as the company’s demise was announced.

Priceline has leased the former Dick Smith store in Adelaide’s CBD.

“Following the collapse of Dick Smith we knew that the Gawler Place tenancy would need to be placed on the market,” Pottenger says.

“We were always confident it would lease well due to its close proximity to Rundle Mall and, after a short campaign, we received four offers, all from national tenants.”

Priceline shifted from its former Adelaide CBD store just a few doors down, in order to be closer to Rundle Mall, Pottenger says.

“Given that the tenant has been trading well in this location for many years it gave our client some comfort going into the lease negotiations.”