Spend more now says Gerry
Start spending, says Harvey was the headline in Melbourne’s The Age business section yesterday. To further quote:
Retail veteran Gerry Harvey has warned of more failed businesses and job losses this year unless the Australian economy quickly returns to growth and jittery consumers switch from paying down their credit cards to patronising shopping centres.
Read the full article Start spending says Harvey at The Age website.
The comments were linked to the release of statistics from January this year which showed that retail sales have grown by just 0.3 per cent and this increase was more than created by a 4.3 per cent increase in spending at cafes and restaurants. In the same article Mr Harvey told The Age that he had been approached to buy struggling retail businesses but he remained cautious.
Harvey Norman’s interim profit is reported by The Age to have fallen by 2.1 per cent to $128.95 million.
It might be worth remembering that Mr Harvey was initially dismissive of online shopping but now claims that the ability to avoid GST when shopping online has affected his business. Interesting statistics show that whilst many Australians are embracing online shopping, 70 per cent of their transactions are with local businesses.
Release of retail performance for January
Have your say
What do you think? Is it the consumer’s fault that Gerry Harvey’s retail chain is having a bad time? Or does the owner of this business need to get his own house in order? Read Kaye's blog to find out what she thinks about Gerry's comments, then leave your own at the bottom of the article.