Harvey Norman Name Added To 2nds World
Harvey Norman is keeping pace with its plan to rapidly turn around its purchase of discount retailer 2nds World, already rebranding two outlets “Harvey Norman 2nds World.”
The Auburn and Castle Hill 2nds World stores have received the new masthead after the Harvey Norman team renegotiated the stores’ leases, and completed an asset purchase of stock, fixtures and fittings.
Reportedly, the Penrith store is set to join the new 1,000 sqm site in the Harvey Norman @ Domayne homemaker centre.
As previously reported by ChannelNews, the embattled retailer 2nds World was placed in administration after suffering for some time.
A major contributor to its lack of business was fierce competition from online retailers Catch.com.au and Kogan.com.au as well as a lack of parking near their Cremorne outlet.
ChannelNews was also made aware of several suppliers who had elected to stop credit to 2nds World.
Three weeks following the news, Harvey Norman Holdings Chairman and local billionaire, Gerry Harvey, scooped up the discount electronics retailer and its assets.
2nds World operated five retail outlets in New South Wales — Auburn, Caringbah, Castle Hill, Cremorne (not expected to reopen) and Penrith — plus an online store.
ChannelNews understands Harvey is also planning to expand the brand interstate, with 2nds World stores in VIC, SA and QLD.
Harvey Norman is commandeering the majority of the seconds market in NSW with these new updated sites, plus its trade-in and clearance store in Mascot.
In an interview with Appliance Retailer, Harvey Norman executive director, David Ackery confirmed the company’s strategy.
“Our proprietors are in negotiations with suppliers to purchase stock,” said Ackery.
“Our strategy is to sell factory seconds, reworked appliances and run-out lines and not to stock brand new appliances.”
Ackery also made mention that the 2nds World Harvey Norman website is live but there are no plans to update the online channel as he believes “Our customers need to visit our stores to see what they are buying”.