Broker CLSA has predicted Woolworths Limited
(ASX:WOW) will cull almost half of its Dick Smith electronics stores and focus on its online strategy.
The CLSA report obtained by The Australian says the supermarket giant will close up to 189 stores of its 386 existing Dick Smith stores and invest online.
Woolworths acquired the Dick Smith brand in 1982 and CLSA believes Woolworths can almost double Dick Smith profitability in the short term to $40 million if it follows the strategy.
Separately, Woolworths has told The Australian Financial Review its beer sales are growing and not in decline as recent Nielsen data has suggested.
Woolworths Liquor general manager of merchandising Steve Donohue has told the paper, “Beer is far from dead.”
In the 2011 financial year Woolworths generated a net profit $2.1 billion.
