Harvey Norman To Open 12 New Stores After Record Growth
Harvey Norman is opening 12 new stores but despite their record growth in Australia the bulk of their new stores will be overseas.
In its latest annual report released on Wednesday, Harvey Norman said that despite their initial plan to open 21 new stores overseas by the end of the 2021 financial year, with 17 of those new stores in Singapore and Malaysia that this has all changed due to COVID-19.
In their annual report listed with ASIC today Harvey Norman said that they were back on track with their offshore store opening program.
After opening stores in Malaysia in 2019 and an electrical outlet store at Takanini, South Auckland in March 2020 the COVID-19 pandemic halted their overseas expansion plans, and the remaining 5 stores slated for the second half of this year were delayed due to government mandated lockdowns and business closures.
The Company has now revised their plans, and we now intend to open up to 12 new stores overseas during the 2021 financial year. We have already opened the Galway City store in Ireland on 22 July 2020, only 3 months behind schedule and the Sligo store is anticipated to open in October 2020. Our second store in the town of Pula in Croatia is on track to open in November 2020 the company said.
They also plan to open 3 new stores/outlets in New Zealand by December 2020. The remaining 6 stores will be in Southeast Asia, which remains the retailers fastest growing offshore region, with 3 new stores in Singapore to open before December 2020, and 3 new stores in Malaysia to open between October 2020 and May 2021.
Chairman Gerry Harvey said Our ‘premium refit plan’ announced last year continued throughout FY20 but was scaled back to those refits that were necessary for the safety, comfort, and security of customers and for the protection of our brands. We anticipate recommencing the premium refit plan in FY21.
A new store in the Sydney suburb of Hornsby – an old Myer – was expected to launch this week but has been pushed back to next month.
Harvey Norman says franchises in Melbourne that have been closed under stage four lockdowns have seen customers quickly move to click & collect and contactless deliveries, but turnover is still expected to take a hit.
Regardless, executive chairman Gerry Harvey believes the company looks set for a record first half result.
Unaudited figures for the period from July 1 to September 17 showed sales revenue had jumped more than 30 per cent, while profit before tax, excluding the impact of net property revaluation adjustments, had skyrocketed around 185 per cent to $178 million.
“That’s way beyond anything that you could imagine,” Mr Harvey recently said.