Harvey Norman appears to be significantly over stocked running into the peak holiday buying period, with franchisees told that they cannot order new stock according to sources.

The move has shocked suppliers with Fisher and Paykel just one of several brands offering competing retailers a significant discount on stock they were hoping to sell via Harvey Norman retailers running into the peak holiday period.

ChannelNews has been told, that one big appliance brand is discounting stock out to other retailers by as much as 15%.

According to one Harvey Norman franchisees the big CE and appliance retailer has a “good” Black Friday but has had a “shocker” November trading period.

A key International appliance supplier said, “The Harvey Norman buying process is broken and it has got to be costing the business. They need a central buying system as the current process is not productive compared to the likes of The Good Guys and JB Hi Fi who work a lot closer with suppliers and have an efficient buy in system ”.

Unlike most retailers Harvey Norman has a committee process that has to approve the ranging of a product. It’s then down to the franchisees to individually order stock.

ChannelNews understands that a letter was recently sent to suppliers concerning the stock situation at Harvey Norman.

Year to date Harvey Norman shares is down 15.48% with the big retailer set to come under pressure next year to deliver returns according to analysts as the market faces rising costs and slowing property sales.

While the business has had good earnings growth 2023 is shaping up to be a tough year for the retailer according to observers.