Harvey Norman Chairman Gerry Harvey has described the placing of David Jones into administration as “like someone close to you dying”.

He has also admitted that change is underway at Harvey Norman stores due to the rapid acceleration of consumers changing the way that they shop.

Currently investing in cement Companies in Papua New Guinea the wily retailer has issued an ominous warning for all retailers in the wake of the collapse of department store giant David Jones.

“I think every furniture, electrical leading retailer out there at the moment is under extreme pressure.

Gerry Harvey Centre

“We’re the landlord and we get all the figures of all the retailers, so we know what’s happening.

“So they’re nearly all down.”

He described the collapse of the 188-year-old department store as “like someone close to you dying”, and admitted change is also underway inside Harvey Norman stores as consumers rapidly shift the way they shop.

“Brain drain” blamed for David Jones fall

David Jones has been reduced to 38 stores following heavy losses, a shrinking customer base, an inability to pay suppliers and top brands pulling stock.

Harvey blamed a loss of retail expertise under owner Anchorage Capital, which has spent recent years stripping costs out of the business in a bid to return it to profit. Critics argue the cuts have pushed the chain closer to a discount model than the full-service department store it once was.

“You’ve got to understand fashion, cosmetics, advertising, promotions, retail, people,” Mr Harvey said.

“Today, they don’t exist. And then all their staff became part time. Some of them know a little bit about the product. The great majority don’t know anything.

“You run into them and say ‘can you tell me about something’ and they say ‘I’m going to university. I only work here two days a week’.”

Business lobby warns government

Australian Chamber of Commerce and Industry chief executive Andrew McKellar told Commercial Real Estate the collapse was a warning to the Albanese Government.

“Australian retailers, like many businesses across the country, are telling us the same thing: costs are rising faster than they can absorb them, rising interest rates will make this worse,” Mr McKellar said.

“This is a warning government cannot ignore, and it is why we need serious economic reform to take the pressure off business and households.”

Property buffer for Harvey Norman

Harvey Norman is better insulated than most rivals because of its property holdings. The group describes itself as Australia’s largest single owner of large-format retail property.

According to Harvey Norman Holdings’ FY2026 annual report, released on 28 August 2026, the group held global tangible property assets worth approximately $4.8 billion at 30 June 2026. These include:

Australian investment properties valued at $4.12 billion
99 owned Australian retail complexes, out of 195 franchised complexes
An overseas portfolio of 29 owned retail properties worth $657 million

The portfolio spans homemaker centres, retail warehouses, distribution facilities and international retail premises. Its seven most valuable sites carry a combined book value of approximately $988 million:

Property FY2026 valuation
Penrith Homemaker Centre, NSW $273.82m
Springvale Homemaker Centre, VIC $175.00m
Maroochydore Homemaker Centre, QLD $114.01m
Silverwater Warehouse Complex, NSW $112.41m
Macgregor Homemaker Centre, QLD $106.00m
Cambridge Park Centre $103.47m
Watergardens Homeplace, VIC $103.23m

The network also houses 480 third-party tenants, providing rental income beyond the group’s Harvey Norman, Domayne and Joyce Mayne operations.

These assets belong to Harvey Norman Holdings and are separate from Gerry Harvey’s personal real estate.

Harvey backs PNG cement play

Separately, Harvey has increased his stake in Papua New Guinea-focused Pacific Lime and Cement after taking part in a $50 million capital raising, with shares offered at 36¢ each.

He already held 70 million shares, representing 6.5% of the company, which is capitalised at $354 million.

Pacific Lime and Cement is on track to begin quicklime production at its site 35 kilometres from Port Moresby in the first half of 2027.