He described Harvey Norman's local operations as ''treading water'' as it gets hit by indifferent consumer spending and massive price deflation, which has led to the company repositioning its shelf space away from electronic goods where the price erosion is most severe.  :'(

''The price of everything has just gone crashing down, and that's really affected our business so we're concentrating now on other products, and TV and audio has to take a smaller percentage of our shop,'' Mr Harvey said.

Not that it will be easy making any transition from computers and electronics, which have been a big part of the company's business, he said.

The problem is, the price erosion has become so bad the retailer can no longer contemplate selling its way back to a healthy position.  :'(

Mr Harvey used the example of a 32-inch colour TV advertised recently for $299. ''We were selling those things for $699 a year ago.

''The whole market is in a state of extreme change at the moment so we've had to look at our business and said you can't solve this problem with TV sales because we'll have to sell three times as many to earn the same dollars as we were two to three years ago and that's what's affecting our sales. We're making more sales of everything, but it's all cheaper.''

He contends that this problem will be worse for competitors such as Dick Smith and JB Hi-Fi. Unlike Harvey Norman, they cannot reposition their sales towards furniture, carpets, and other household goods.

Christmas sales are expected to be healthy, but short of the usual spending Harvey Norman has grown to expect.

''I think this Christmas will be OK, but this is the first time that I can remember where I haven't said this Christmas will be the best Christmas ever,'' Mr Harvey said.  :(

Outside Australia, it was made clear that Asia holds the most promise for the retailer.

''I think our biggest ray of sunshine is Asia,'' said Harvey Norman managing director Katie Page, who recently attended the opening of the company's $38 million Space Furniture superstore in Singapore, which is acting as a regional sales hub.

Harvey Norman also remains committed to its troubled Irish operations.

''We are going to persevere and that's all there is to it,'' Mr Harvey said.

He did offer a glimmer of hope, citing a recent article suggesting that, having taken its economic medicine, Ireland may now be returning to growth.

''It's the first thing I've read where it looks like, maybe, Ireland is on the road to recovery,'' Mr Harvey said.
Comments

comments so far

   "problem with TV sales because we'll have to sell three times as many to earn the same dollars" seems they have to work a little harder to make the same dolars, sell 3 TV's instead for 1 to make the same profit.
   I can see why this would be hard, every time I go into Harvey Norman I have to look for someone to help me. The way I see it, More customers = more repete business = more sales on other items = more money = more profit? Maybe I am wrong about that, what do I know?.

   TrooRoo | Alb - November 30, 2011, 7:26AM

   And if the government failed to reach a surplus in 2012/13 - Harvey, Abbott, Robb and the Murdoch media would be howling for blood.

   Even little Wyatt Roy would be squealing that in his "lifetime" he has never seen a Labor government achieve a surplus.

   Gerry Harvey should stop complaining about the Labor government and have a good look at how his stores operate. Woeful customer service and overpriced asian-made products.   :(

   bettestreep2008 - November 30, 2011, 7:25AM

   Um, Mr Norman, d'you think people don't listen to your ranting any more is because phrases like: "We're making more sales of everything, but it's all cheaper" make you look like a whingeing idiot, whereas a phrase like "We're making more sales of everything, BECAUSE it's all cheaper" would make you seem, well, normal.   :(

   kambahkrawler | Canberra - November 30, 2011, 7:18AM

   Gerry Harvey is Gerry Harvey.
   He looks after his pocket first.
   During the GFC he saw the Gov. as his best mate now it's the enemy.

   Jim | Melbourne - November 30, 2011, 7:29A


Read more: http://www.theage.com.au/business/harvey-blasts-canberra-20111129-1o557.html#ixzz1f87GDgyV

I am pretty sad to see you constantly knocking Aussie business..

we have toi spend more and more on our power bills.. and look at the price of petrol.. all affecting just about everything we buy .

I dont see you complaining about that..

if you dont like Harvey Norman dont shop there. its that simple..shop overseas then complain when theres no local business and no jobs.

watching the news technology in retail is going through the roof.. it wont be long before checkout chicks.. and shop assistants no longer exsist..

will you be satisfied then?

where else is business going to be able to cut there costs?

'The price of everything has just gone crashing down, and that's really affected our business.    How wonderful that you have put your prices down Mr Harvey.  I  am sure that the customers will start to flood in now.  Or will they?.   :)

cods wrote on Nov 30^th, 2011 at 7:25am:

I am pretty sad to see you constantly knocking Aussie business.. we have toi spend more and more on our power bills.. and look at the price of petrol.. all affecting just about everything we buy . I dont see you complaining about that.. if you dont like Harvey Norman dont shop there. its that simple..shop overseas then complain when theres no local business and no jobs. watching the news technology in retail is going through the roof.. it wont be long before checkout chicks.. and shop assistants no longer exsist.. will you be satisfied then? where else is business going to be able to cut there costs?

When the shopfront closes, they will find other ways to do business.

Spending on consumables will be way down on the list of things to do in the future years.

What did all the blacksmiths do when cars started becoming popular?

We will move away from merchandise into other areas after the "Great Disruption" that's just around the corner.

The spendathon is over. The growth fairy is dead.

thats not what I am talking about.. its the talking down of business that are a very important cog in the wheel..it gives me the sh!ts to put it mildly..I like to see a friendly face and have a bit of help when I am spending my dollar. and if there is somethjing worng I can take it back I dont have to repack it and take it to the postoffice..and wait for whenever.. the other day I read a website on feedback about. well websites..who was good and who was bad when it came to buying on the net.. and I would say 80% was lousy..I am not saying this is a five minute wonder.. but I dont think it will take over the world like you predict pansi..not for a long time to come.

Maybe Gerry Harvey should be more concerned about the people representing his “name” when they take on his franchise Harvey Norman stores.

Why should Australians shop at a GH stores when they are told nothing but a pack of misleading lies and deception from staff; the same lies and deception you can get from online shopping without having to leave the comfort of your own lounge room.

When someone (sales assistant) has to lie to your face to get a sale, then you are either born with a bad character or you need to find another job, because that is a bad situation.

My sister recently went to purchase a $4K lounge displayed at a HN store recently and was told they had none in stock and she would have to leave a $700 deposit and wait 16 weeks before it was made and imported from Malaysia.  

No staff consultant told her at the time that this lounge or any lounge made in Asia was going to be sprayed with the carcinogenic called “Formaldehyde” to kill bugs and to protect the leather for longer durability.

She has since purchased an all Australian made fabric lounge from Focuson Furniture who had one in stock ready to be delivered.

I have no empathy or sympathy for Australian businesses, they know what’s been happening and they have been letting happen. They have been content for decades to import rubbish products/furniture from poor Asian countries who misuse cheap human labour just so these businesses can make a fast profit at the Australian consumers and the cheap human labourers expense. So now things have caught up with them they have suddenly started to whinge and whine about competition from the internet.

Not sure what other families have done this year, but we have purchased everything for Xmas online and overseas and massive discounted prices.  The wife just received a genuine Louis Vuitton Handbag from a London online store that cost $250 + postage, but would normally cost around $1200 here in Australia.

Why anyone would seriously shop for anything beside bog-roll in this strip mine is beyond me.  8-)

cods wrote on Nov 30^th, 2011 at 9:11am:

thats not what I am talking about.. its the talking down of business that are a very important cog in the wheel..it gives me the sh!ts to put it mildly..I like to see a friendly face and have a bit of help when I am spending my dollar. and if there is somethjing worng I can take it back I dont have to repack it and take it to the postoffice..and wait for whenever.. the other day I read a website on feedback about. well websites..who was good and who was bad when it came to buying on the net.. and I would say 80% was lousy..I am not saying this is a five minute wonder.. but I dont think it will take over the world like you predict pansi..not for a long time to come.

Internet buying and selling won't take over the world cods, simply because there will be a gradual or maybe drastic trend toward NOT spending in general. The world is indebted, both private and public debt is out of hand.

I've never had any trouble buying on-line, but I'm sure some people have nightmare stories to tell.

Friendly faces at Harvey Norman? as friendly as an attack dog.

Australians in general have a poor service culture.

I have a cousin who works at Athletes Foot, and he said he gets internet shoppers all the time.  The thing is when people ask for the product number, they give them the Athletes Foot one, so when people plug it into google they get nothing.

Seems fair to me.

Friendly faces at HN stores... ;D ;D ;D ;D ;D ;D ;D

More like da juve from the movie of “Pretty Woman” where Julia Roberts is ignored because of the cloths she wears.

Walk into a HN store wearing shots, T-shirt and thongs looking to buy something and see how long it takes a salesperson to approach you. Ladies wear a baggy top, trackie daks and thongs and watch for the same response.

I bet no one will come near you!!


This doesn't happen on the internet

It is a joy to receive true service in asian countries, by people who value your custom.  It's like a slap in the face coming back to australia and barely being acknowledged, let alone offered assistance.  

culldav wrote on Nov 30^th, 2011 at 10:42am:

Friendly faces at HN stores... ;D ;D ;D ;D ;D ;D ;D More like da juve from the movie of “Pretty Woman” where Julia Roberts is ignored because of the cloths she wears. Walk into a HN store wearing shots, T-shirt and thongs looking to buy something and see how long it takes a salesperson to approach you. Ladies wear a baggy top, trackie daks and thongs and watch for the same response. I bet no one will come near you!!

I personally only shop at the one near us because of a friend that works there.

One story
I did have a pearler of an argument with a guy in the cooking department trying to tell me if you want to make anything decent you need a dual fuel oven ($4,500, both gas and electric oven), and when I said they dont need something that good the guy says to me "look mate, Im a chef by trade and I know the difference".
My reply was "if you were any kind of a chef you would be still one and not hocking crap to people they dont need, and the 2,500 meals a week out of our venue all on gas might disagree."
I was not happy.  My mate who is also department manager come over after hearing me though the store and they whisked me away.  The guy is no longer working there nor should he.

Harvey Norman lost my business years ago. Probably spent $10,000 elsewhere. Mainly at Clive Peeters. Now they are gone will have to look elsewhere.

Ex Dame Pansi wrote on Nov 30^th, 2011 at 8:18am:

cods wrote on Nov 30th, 2011 at 7:25am: I am pretty sad to see you constantly knocking Aussie business.. we have toi spend more and more on our power bills.. and look at the price of petrol.. all affecting just about everything we buy . I dont see you complaining about that.. if you dont like Harvey Norman dont shop there. its that simple..shop overseas then complain when theres no local business and no jobs. watching the news technology in retail is going through the roof.. it wont be long before checkout chicks.. and shop assistants no longer exsist.. will you be satisfied then? where else is business going to be able to cut there costs? When the shopfront closes, they will find other ways to do business. Spending on consumables will be way down on the list of things to do in the future years. What did all the blacksmiths do when cars started becoming popular? We will move away from merchandise into other areas after the "Great Disruption" that's just around the corner. The spendathon is over. The growth fairy is dead.

And exactly what will the employees do???...
You know, the workers, the '99%'???
The people the unions are supposed to protect?

cods wrote on Nov 30^th, 2011 at 7:25am:

I am pretty sad to see you constantly knocking Aussie business.. we have toi spend more and more on our power bills.. and look at the price of petrol.. all affecting just about everything we buy . I dont see you complaining about that.. if you dont like Harvey Norman dont shop there. its that simple..shop overseas then complain when theres no local business and no jobs. watching the news technology in retail is going through the roof.. it wont be long before checkout chicks.. and shop assistants no longer exsist.. will you be satisfied then? where else is business going to be able to cut there costs?

well I complain about the price of petrol all of the time as well as offering an alternative solution but you continue to knock it. :(

The problem with Harvey and his greedy shareholders is that Harvey  doesn't have a real business. He is selling the same chinese junk that everyone else is selling and is chasing the price down until his business is no longer viable. Why aussies would be stupid enough to invest in a company like this is beyond me !!

cods wrote on Nov 30^th, 2011 at 9:11am:

thats not what I am talking about.. its the talking down of business that are a very important cog in the wheel..it gives me the sh!ts to put it mildly..I like to see a friendly face and have a bit of help when I am spending my dollar. and if there is somethjing worng I can take it back I dont have to repack it and take it to the postoffice..and wait for whenever.. the other day I read a website on feedback about. well websites..who was good and who was bad when it came to buying on the net.. and I would say 80% was lousy..I am not saying this is a five minute wonder.. but I dont think it will take over the world like you predict pansi..not for a long time to come.

you can get much more unbiased opinions and reviews online than you get in any shop !! Do you honestly believe that a salesman in a shop is goiing to bag the crap out of the products they sell ??

gizmo_2655 wrote on Nov 30^th, 2011 at 11:00am:

Ex Dame Pansi wrote on Nov 30th, 2011 at 8:18am: cods wrote on Nov 30th, 2011 at 7:25am: I am pretty sad to see you constantly knocking Aussie business.. we have toi spend more and more on our power bills.. and look at the price of petrol.. all affecting just about everything we buy . I dont see you complaining about that.. if you dont like Harvey Norman dont shop there. its that simple..shop overseas then complain when theres no local business and no jobs. watching the news technology in retail is going through the roof.. it wont be long before checkout chicks.. and shop assistants no longer exsist.. will you be satisfied then? where else is business going to be able to cut there costs? When the shopfront closes, they will find other ways to do business. Spending on consumables will be way down on the list of things to do in the future years. What did all the blacksmiths do when cars started becoming popular? We will move away from merchandise into other areas after the "Great Disruption" that's just around the corner. The spendathon is over. The growth fairy is dead. And exactly what will the employees do???... You know, the workers, the '99%'??? The people the unions are supposed to protect?

go down to center link ;)

culldav wrote on Nov 30^th, 2011 at 10:34am:

No staff consultant told her at the time that this lounge or any lounge made in Asia was going to be sprayed with the carcinogenic called “Formaldehyde” to kill bugs and to protect the leather for longer durability. She has since purchased an all Australian made fabric lounge from Focuson Furniture who had one in stock ready to be delivered.

The reason the no consultant told her that it would be sprayed with formaldehyde to kill bugs is because it's in everything and will off gas pretty quickly as it is a volitile compound.

As for the Aussie made fabric lounge guess what, it also will off gas formaldehyde as well. Once the smell has gone so too has the volitile component, all the 'new' smell is just the formaldehyde off gasing.

If you are worried about getting cancer from that stuff don't buy anything new, make sure it is a couple of years old before you pick it up.


Here's less than 10 mins of research.



Uses of formaldehyde

Formaldehyde is used in:
■manufacturing many materials, such as plastics, foam insulation, fungicides, mirrors, insecticides, petroleum, resins and industrial chemicals
■building materials, such as sheet vinyl flooring, doors, decking
■timber materials, such as MDF, plywood and laminated timber, wall lining and coverings such as wallpaper
■textiles and clothing, such as fabrics, blankets, and clothing finishes designed to gain permanent press and stain resistance
■cosmetics and personal care products, such as cleansers, fingernail varnishes and hardeners, shampoos and conditioners and toothpastes
■household cleaning products, such as carpet and rug cleaners, disinfectants, dish washing liquids, and floor cleaner and polish.

http://www.epa.gov/iaq/formalde.html



Formaldehyde is a colorless, flammable, strong-smelling chemical that is used in building materials and to produce many household products. It is used in pressed-wood products, such as particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper product coatings; and certain insulation materials. In addition, formaldehyde is commonly used as an industrial fungicide, germicide, and disinfectant, and as a preservative in mortuaries and medical laboratories. Formaldehyde also occurs naturally in the environment. It is produced in small amounts by most living organisms as part of normal metabolic processes.

http://www.cancer.gov/cancertopics/factsheet/Risk/formaldehyde

You inject formaldehyde into your children's bodies when you immunise them.

Annie Anthrax wrote on Nov 30^th, 2011 at 12:05pm:

You inject formaldehyde into your children's bloodstream when you immunise.

A link would be nice. Since formaldehyde is a possible carcinogen and pretty toxic to humans, I'd like to see where you get your 'facts' from.

The only time you are injected with formaldehyde is when you go to the mortuary for preservation.

This is the one that is injected at birth. You can do your own research to find the rest. It's all on the same government site.


Quote:

Infanrix hexa – GlaxoSmithKline (DTPa-hepB-IPV-Hib; diphtheriatetanus- acellular pertussis-hepatitis B-inactivated poliomyelitis vaccine-Haemophilus influenzae type b (Hib)). The vaccine consists of both a 0.5 mL pre-filled syringe containing 30 IU diphtheria toxoid, 40 IU tetanus toxoid, 25 μg pertussis toxoid (PT), 25 μg filamentous haemagglutinin (FHA), 8 μg pertactin (PRN), 10 μg recombinant HBsAg, 40 D-antigen units inactivated polioviruses type 1 (Mahoney), 8 D-antigen units type 2 (MEF-1) and 32 D-antigen units type 3 (Saukett) adsorbed onto aluminium hydroxide/phosphate; phenoxyethanol as preservative; traces of formaldehyde, polymyxin and neomycin and a vial containing a lyophilised pellet of 10 μg purified Hib capsular polysaccharide (PRP) conjugated to 20–40 μg tetanus toxoid. The vaccine must be reconstituted by adding the entire contents of the syringe to the vial and shaking until the pellet is completely dissolved. May also contain yeast proteins.

http://health.gov.au/internet/immunise/publishing.nsf/Content/Handbook-hepatitisb

BigOl64 wrote on Nov 30^th, 2011 at 12:27pm:

Annie Anthrax wrote on Nov 30th, 2011 at 12:05pm: You inject formaldehyde into your children's bloodstream when you immunise. A link would be nice. Since formaldehyde is a possible carcinogen and pretty toxic to humans, I'd like to see where you get your 'facts' from. The only time you are injected with formaldehyde is when you go to the mortuary for preservation.

Formaldehyde is used as a preservative in most vaccines.......increases shelf life.

gizmo_2655 wrote on Nov 30^th, 2011 at 12:34pm:

BigOl64 wrote on Nov 30th, 2011 at 12:27pm: Annie Anthrax wrote on Nov 30th, 2011 at 12:05pm: You inject formaldehyde into your children's bloodstream when you immunise. A link would be nice. Since formaldehyde is a possible carcinogen and pretty toxic to humans, I'd like to see where you get your 'facts' from. The only time you are injected with formaldehyde is when you go to the mortuary for preservation. Formaldehyde is used as a preservative in most vaccines.......increases shelf life.

Yes. And what does exposing a baby to carcinogens matter when already obscene profits are at stake?

I always like a dcecent link for some of the more contentious claims. Too many people say sh1t without backing it up with facts; so thanks for that annie.

You're welcome. I did a lot of research on it when my kids were younger.

BigOl64 wrote on Nov 30^th, 2011 at 12:01pm:

culldav wrote on Nov 30th, 2011 at 10:34am: No staff consultant told her at the time that this lounge or any lounge made in Asia was going to be sprayed with the carcinogenic called “Formaldehyde” to kill bugs and to protect the leather for longer durability. She has since purchased an all Australian made fabric lounge from Focuson Furniture who had one in stock ready to be delivered. The reason the no consultant told her that it would be sprayed with formaldehyde to kill bugs is because it's in everything and will off gas pretty quickly as it is a volitile compound. As for the Aussie made fabric lounge guess what, it also will off gas formaldehyde as well. Once the smell has gone so too has the volitile component, all the 'new' smell is just the formaldehyde off gasing. If you are worried about getting cancer from that stuff don't buy anything new, make sure it is a couple of years old before you pick it up. Here's less than 10 mins of research. Uses of formaldehyde Formaldehyde is used in: ■manufacturing many materials, such as plastics, foam insulation, fungicides, mirrors, insecticides, petroleum, resins and industrial chemicals ■building materials, such as sheet vinyl flooring, doors, decking ■timber materials, such as MDF, plywood and laminated timber, wall lining and coverings such as wallpaper ■textiles and clothing, such as fabrics, blankets, and clothing finishes designed to gain permanent press and stain resistance ■cosmetics and personal care products, such as cleansers, fingernail varnishes and hardeners, shampoos and conditioners and toothpastes ■household cleaning products, such as carpet and rug cleaners, disinfectants, dish washing liquids, and floor cleaner and polish. http://www.epa.gov/iaq/formalde.html Formaldehyde is a colorless, flammable, strong-smelling chemical that is used in building materials and to produce many household products. It is used in pressed-wood products, such as particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper product coatings; and certain insulation materials. In addition, formaldehyde is commonly used as an industrial fungicide, germicide, and disinfectant, and as a preservative in mortuaries and medical laboratories. Formaldehyde also occurs naturally in the environment. It is produced in small amounts by most living organisms as part of normal metabolic processes. http://www.cancer.gov/cancertopics/factsheet/Risk/formaldehyde

very informative its problem is in an enclosed environment I believe..

what happened to the skull and crossbones that use to adorn anything poisonous and should be handled with care..we used to heap of those bottles under the sink.. ;D