Struggles Dick Smith faced
Dick Smith enjoyed strong sales growth prior to its successful listing on the stock exchange in late 2013. Joe Hayes stated that, "management we're very focused on increasing revenue and generating profability," perhaps with the assistance of expansions and store renovations. It seems as if they felt that they could start to focus on improving the brand's finer details due to their proven success, however it was indeed this sense of safety that ultimately left the company struggling for business. With more money flowing out of the business then in, Dick Smiths expansion plans compromised all its surplus earnings and required significant borrowing. Change in customer preferances also had a major impact on the companies future. "Unchecked" expansion plans allowed major inventory purchasing decisions in 2015. Clearly they assumed that they could keep selling the same products for the same price, however a lack of consideration for constant changes in consumer demand caused major issues for the company. It meant that Dick Smith was carrying too much overvalued stock that was not able to be sold.