Gerry Harvey Retains Faith In Struggling Harvey Norman Franchisee System

Gerry Harvey is placing the future growth of the Harvey Norman retail business in the hands of its struggling franchise business. Although the franchise system’s profit before tax has dropped by 36.5 per cent year-on-year (six months to 31 December 2011); Harvey said it is still “the most viable option to endure the current downturn in the retail sector”.

In his Chairman’s Report released this morning, Harvey continued to promote Harvey Norman’s franchise system, which is characterised by individual businesses operating out of stores owned by Harvey Norman Holdings. In most Harvey Norman stores, there are multiple franchisees running separate, independent businesses, such as Electrical, Computers and Furniture.

“We have approximately 700 franchisees operating as independent business owners within our franchise system,” Harvey said. “These independent business owners have access to a system that provides them with a well-established iconic brand, suitably located and well-maintained retail premises and access to supplier arrangements typically enjoyed by a large-scale retailer.”

Leave a Comment

Your email address will not be published. Required fields are marked *