Harvey Norman Conducts Major CE Review Up To 10 Stores To Go
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Harvey Norman is currently conducting a major review of their operations with a senior executive admitting that the Company could close up to 5-10 stores in coming weeks. The Company is also reviewing their consumer electronics business with a view to expanding several product categories.

Harvey Norman is currently conducting a major review of their operations with a senior executive admitting that the Company could close up to 5-10 stores in coming weeks. The Company is also reviewing their consumer electronics business with a view to expanding several product categories.

Yesterday Harvey Norman announced the closure of its Domayne Campbelltown store, with the loss of 40 jobs.

David Ackery the General Manager of Electrical at Harvey Norman and a director and board member said that the Company was currently undertaking a major review of their operations including the highly successful consumer electronics category.

He told ChannelNews “We have an obligation to shareholders to act in a responsible manner while also delivering a return on investment and while we yesterday announced the closure of our Domayne Cambeltown store we are looking at the closure of between 5 and 10 other stores. We believe this is a smart move in light of the current economic conditions”.

Ackery also acknowledge that a major review was currently being undertaken of their consumer electronics business and the end result could see the expansion of operations into new areas where Harvey Norman has had a weakness in the past.

One area identified by ChannelNews is the gaming market with Ackery admitting that it was a booming area of the market where Harvey Norman had not performed as well as JB Hi Fi.

“We are currently looking at this market and we will shortly announce some new plans” he said.

Earlier this week the Company announced 8.9% growth for the quarter however Ackery said “The issue is not volume as we are getting people through the door the issue right now is margins with both vendors and retailers slashing prices”

Yesterday Harvey Norman chairman Gerry Harvey  described the current financial crisis as the worst he had seen in 47 years of business.

“I’ve been doing exactly what Mr Rudd wants me to do and I can’t keep doing it indefinitely . . . I’ve been listening to him and doing it but I can’t keep doing it because crunch time is coming”.