Harvey Norman Gets Into Building Luxury Apartments
As retail sales in Australia wobble Harvey Norman, is looking to team up with property developers to deliver more luxury apartments as opposed to retail stores.
It appears that Gerry Harvey is taking a page from his Australian play book and trying to apply property development in Ireland where he has 16 stores.
Apparently, he wants to team up with property developers to fit out more blocks of apartments, after completing its first deal last year for a luxury development in Dublin’s Ballsbridge suburb.
What’s been revealed is that the big retailers who also has stores in Singapore and Malaysia as well as Slovenia and Croatia have fitted out 88 “super prime” apartments.
The revelations were hidden in the small print of the Companies Irish financial report.
Rental of the apartments are not cheap at $6,500 a month but you do get Harvey Norman supplied furniture and appliances.
“This [apartment fit outs] is a new business stream which we expect to grow in future as building completions increase across the country,” said the directors of Harvey Norman.
According to Irish Media Harvey Norman was in the middle of a huge sales surge prior to COVID-19, driven by a booming Irish economy in the 12 months to the end of June 2019. Total group turnover grew by 14.5 per cent to more than $380 million.
The group’s profits jumped from just $176,000 the previous year to $26 million in 2019.
The performance captures only 15 of its 16 stores, with the latest only opened last month.
Currently Harvey Norman Ireland has $164 Million in losses on their books after years of struggling to grow their Irish operation.
In a note signed off last month Harvey Norman revealed that the impact of the pandemic on its operations “has not been as severe as initially predicted” because a surge in online sales more than made up for the closure of its outlets during lockdown.
Harvey Norman’s digital sales grew almost 40 per cent in the 12 months to the end of June last year, the accounts reported.