Well, in a round-about way. Everyone’s favourite retailer released its yearly sales data today, and said that furniture, bedding and white good revenue has grown, while “Price deflation in the television category has continued and has resulted in reduced revenues; however transactions continue to grow.” Harvey Norman also said it plans to close all Clive Peeters and Rick Hart stores.
The Clive Peeters and Rick Hart brand formats have not achieved the requirement for ongoing investment by the Company. Given this, 16 of the 25 Clive Peeters and Rick Hart stores will be converted to Harvey Norman complexes, 2 will be converted to Joyce Mayne complexes, 4 Clive Peeters stores will be closed and 3 Rick Hart stores will be closed.
Clive Peeters stores in Bendigo, Dandenong, Thomastown and Malvern will be closed — along with Rick Hart locations in Mandurah, O’Connor, and Osborne Park Seconds. [Australian Stock Exchange (PDF)]
Jamie
Wednesday, August 10, 2011 at 4:21 PMThey’re also really good at re-collecting the TVs they do sell a week after purchase when the purchaser is not home. Happened to me.
Stefan
Wednesday, August 10, 2011 at 4:44 PMwhat is this?… I dont even..
cayal
Wednesday, August 10, 2011 at 4:33 PMAhh Clive Peeters in Thommo is closing. Used to pit them against Harvey Norman in price matching.
Joe bloggs
Wednesday, August 10, 2011 at 6:27 PMThe reason furniture and bedding revenue is much higher than electrical profits is because there is disgustingly higher margin in furniture and bedding than there is in electrical … Plus you get less hagglers in furniture or bedding. To put it into perspective: a tv cabinet that retails for $999 at Harvey Norman I can GARUNTEE is purchased for no more than $150 … I know this because I work there and am exposed to all 4 franchises. To be blunt electrical places 20% on their gp after gst whereas furniture and bedding place 400% on their gp after gst.
Anthony
Wednesday, August 10, 2011 at 6:35 PM??? But we constantly pump your stores with truck loads of TV’s everyday, and you say your not selling any?!
And Clive peters Bayswater takes full semi loads weekly!
Adrian
Wednesday, August 10, 2011 at 6:55 PMhttp://noharveyno.net/
Sam
Wednesday, August 10, 2011 at 8:34 PMI’d happily pay more money for Australian made furniture- I think alot of people would. But electronics coming from China? Hell no. Whats so Australian about that?
Lolwut
Thursday, August 11, 2011 at 7:31 AMBuy an australian made rubber stopper for shower, cost 10 bucks, made of hard plastic, broken in 2 weeks
Buy an china made brass with rubber ring, cost 6 bucks, works like a charm
I prefer to buy australian made if possible, but whats the justification to spend more money with sub-par quality in this economy?
Common sense win
P5mac
Wednesday, August 10, 2011 at 9:11 PMI don’t think much of the furniture at HN is made in Australia.
From what I understand is that often the raw timber is exported to china and the furniture is manufactured there in Australian hard wood!
SM07
Wednesday, August 10, 2011 at 10:11 PMYeww, Wagga harvey norman!
Luke
Wednesday, August 10, 2011 at 11:10 PMSeriously… Funk Harvey Normans, they are expensive for everything, walking through mine recently i saw a lamp for sale for $199, it looked like something i could make for $20.
kim
Wednesday, August 10, 2011 at 11:21 PMI lost all respect for harvey norman after the way they closed the OFIS franchise within a year of opening.
olearymo
Thursday, August 11, 2011 at 9:27 AMGood god is Harvey Norman STILL around? What do we have to do?
Lillee
Thursday, August 11, 2011 at 9:48 AMNews to Gerry and all retailers: Shoppers shop by price for gadgets. Same gadget, same manufacturer, same warranty, only differentiator is price. Staticice.
Dr. RSG
Thursday, August 11, 2011 at 11:10 AMHarvey Norman sells everything for way above the price they are worth. No wonder their TVs and other electronics are not selling well. Every other outlet (brick and mortar outlet Gerry, not online) sells items for a lot cheaper.