Dick Smith-branded product is being left on the shelf in the chain's fire sale, as shoppers opt for the security of the big brand electronics such as Samsung and LG.
Staff report they are already battling to sell Dick Smith home brand stock despite big discounts and it's only going to get tougher with $1.8 million worth of Dick Smith televisions expected to hit stores in coming weeks.
Dick Smith to close remaining doors for good
Fairfax retail reporter Catie Low explains the impact of Dick Smith's store closures after receivers failed to find a buyer.
The home brand televisions have been stranded in Dick Smith's warehouses since the chain collapsed in early January and a dispute erupted with the manufacturer, Chinese company Shenzhen MTC, which demanded the return of the stock over fears it would not get paid.
Dick Smith's receiver Ferrier Hodgson claims it will honour Dick Smith's "cash-back" promise for purchases made after January 5 for up to 12 months, including replacement or refund for any faulty items and it said funds would be retained to meet this obligation.
But shoppers aren't convinced, with Dick Smith staff saying customers asked a lot of questions about the warranties on products like Dick Smith televisions but in the end most opted to go for a branded product.
"All I tell people is we've sold a lot of Dick Smith televisions in the past and we haven't had many of them returned," one Dick Smith worker said.
"Most of our premium brand televisions are already sold out, particularly Samsung, we've sold all the Samsung phones and people are trying to buy the phones on the display benches, even after we explain they're not for sale," one Dick Smith worker said.
He said the Apple product has been less popular because it was only discounted by 5 per cent, as stipulated by Apple.
The receiver is controlling the discounting of stock over the next few weeks and the worker said they were only told about any new discounts at the beginning of each trading day.
He said a number of customers hoping for bigger discounts had been disappointed to find stock was already sold when they returned to the store a few days later to try and pick up an even bigger bargain.
"It's also my understanding that as we get further into this process the stock left over in the smaller stores will get moved to the bigger centres, we've already got all the stock from a nearby Move store," one staff member said.
"Then they will close down those smaller stores."
Online entrepreneur Ruslan Kogan this week bought Dick Smith's intellectual property, including the brand and trademarks as well as the online businesses in Australia and New Zealand following a two-month auction.
The Dick Smith business will be run separately to online retailer Kogan.com, which sells consumer electronics in addition to homewares, clothing, footwear, sporting goods and health and beauty products.