Monday, 9 May 2016

Dick Smith only the latest high street brand to bite the dust
May 8, 2016 12:50pm - Benedict Brooknews.com.au
A NAME which graced hundreds of towns and cities across Australia is now consigned to the history books, banished to a corner of the internet, a badge for someone else’s business.

But Dick Smith is far from the first well-known name to depart Australia’s high streets and shopping malls. Where Dick goes today so Grace Brothers, Brashs, Adelaide Bank, Action supermarkets and many others have gone before.

Today, international retailers such as Zara and Costco are crowding out domestic competitors.
Retail analyst and managing director of Marketing Focus, Barry Urquhart, tells news.com.au, that Australian towns were once overflowing with brands.

“If you go back to early 1960s, Australia had 27 department stores. Today we have three, it’s perennially changing.”
Mr Urquhart said there were two main reasons famous names disappeared. In a country where two companies often dominate each sector, such as in supermarkets, consolidation has seen smaller players taken over and their brand sacrificed.

Another reason was retailers simply losing their mojo and not moving with the times.
“The changes in the marketplace makes a lot of products and brands redundant and obsolete,” says Mr Urquhart. “The inability to adapt and change is the essence of failure.”

“There is structural change going on all the time and the great challenge for businesses is are they still relevant to the consumer?”
One thing retailers couldn’t rely on was nostalgia for a famous name.

‘Loyalty is lovely to reflect upon but loyalty has been replaced by relevance,” he said.
The classic example was Darrell Lea’s retail stores. Once they were dotted across the major cities, the enticing smell of chocolate wafting down the street. Nevertheless, the company fell on hard times.

“When they said the stores would close there was a rush on, Darrell Leas had never had such good trading,” Mr Urquhart said. “But just as suddenly that interest waned.”
NO LOYALTY

Darrell Lea’s famous Rocklea Road bars are still with us, but in other people’s stores. The Sydney flagship on George St is now a showroom for Telstra phones.
What loyalty Australians had, said Mr Urquhart, was not to established brands but to where they lived.

“Australians by and large are not tribal in their loyalty, but they are parochial,” he said.
News.com.au takes a look at few of the retail brands that are no longer with us and one that made a surprise come back.

GRACE BROS
Like so many famous department store names, from Melbourne’s Buckley & Nunn to Adelaide’s John Martin’s, Grace Bros is no longer with us.

Despite awkwardly having the same name as the decrepit department store in classic comedy Are you Being Served?, Grace Bros ruled the roost in its home state of NSW. Its red waratah logo a common sight.
In 1983, Grace Bros was bought by interstate rival Myer but for more than two decades the company kept the name before finally rebranding all the stores. “At one time Grace Bros was the first port of call, but it came the last resort and you don’t want to be the last port of call,” said Mr Urquhart.

SAFEWAY

Once a prominent supermarket brand in Victoria, Safeway stores remain, have been in decline, with only 10 remaining in the state. Safeway has slowly been rebranded under owner Woolworths from 2008.
In its heyday, in the 1960s, Safeway was revolutionary with its then-US owners introducing Australia to the idea of self-service stores, essentially what we now know of as the average supermarket.

In 1985, the Australian-owned Woolies bought Safeway but it would take decades before the decision was taken to ditch the name.
BI-LO

In the days before Aldi, there was BI-LO. Cheap, and to be frank, not very cheerful. Stocked with depressing looking home brands and seemingly the fruit and veg rejected by larger stores.
In 1987, rival Coles bought the store and positioned as it’s cheaper value brother. But Coles struggled to juggle the two brands and from the late 2000s began rebranding meaning, in some suburbs, two Coles were within spitting distance of one another.

These days, some BI-Los are now, naturally, Aldi branches.
ANGUS & ROBERTSON

By the 1970s, the quintessential bookseller was a mainstay in just about every Australian suburb.
The emergence of US bookseller Borders, and its massive stores with cafes and places to perch and read put pressure on A & R and led the two to merge. But neither were a match for the power of online retailers like Amazon. The stores withered on the vine before the book finally closed on them both.

The name survives as an online book retailer.
ABC SHOPS

With all the focus on Dick Smith, the quiet death of the ABC Shops this year almost went unnoticed. A treasure trove of DVDs of obscure British TV series, gardening books and Tardis money boxes it was the destination for gifts for mum, dad and gran.
BRASHS

Before British music megastores Virgin and HMV arrived there was the home-grown Brashs. Originally a retailer of instruments, by the time the 70s came around Brashs was the destination for music. Pop glitterati attracted huge queues to the more than 100 stores across Australia to signs CDs. But the song came to an end in the late ‘90s when the chain collapsed.
FOSSEYS

Founded in Sydney in 1926 by Alfred Fossey, the apparel retailer grew to 148 stores across the country. Known for its value, if not its style, Fosseys became part of the Coles empire and was eventually merged into Target. Today, many of Target’s country stores are rebadged Fosseys locations.
GOWINGS
A Sydney staple, Gowings department store’s prime position on George St guaranteed it customers. It’s history stretched back to the 19th century but while its CBD store with its famous red neon sign above it was a success, an ill-fated expansion ruined the company. Today, the original store is a branch of UK retailer Top Shop. But the neon sign survives to this day, brightly lit, pointing the way to the Gowings Bar and Grill restaurant.

BLOCKBUSTER VIDEOS
The Borders of videos, Blockbuster turned up in Australia full of US front. And, for a bit, we loved it, with seemingly miles of Hollywood hits and cheap $1 DVDs. And then the internet happened and Blockbuster didn’t know what hit it.

ONE BRAND THAT WENT … AND CAME BACK
BANK OF MELBOURNE

Originally a building society, Bank Of Melbourne was established in 1989 quickly expanding across its home state until Sydney based Westpac gobbled it up in 1997 to bolster its Victorian business. Melburnians were far from impressed.
“The history of Westpac is NSW and they were taking away Bank of Melbourne which is Victorian and you do not do,” said Mr Urquhart. “Localism is very important.”

Westpac clearly heard the grumbling because in 2011 it brought the brand back as an alternative to the big names. Despite, you know, actually being owned by one.
This story has been brought to you by the Emerald Chamber of Commerce Inc.
(Ph: 07 4982 3444) 

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