Multichannel / News

Gerry Harvey moves online despite “no history of making money from it.”

Harvey Norman will launch its online store in coming weeks.

Harvey Norman will launch its online store in the next few weeks. However, Gerry Harvey is still dubious about the profitability of online retail, stating “there’s no history of anyone making money from it.”

 

Harvey Norman will launch its online store in coming weeks.

Gerry Harvey of electronics giant Harvey Norman has announced plans to launch its online retail store within weeks. However, Harvey who famously led Australian retailers in a campaign for goods purchased at overseas online stores to incur GST, remains skeptical about the profitability of online retail.

“They’re kicking us on the internet at the moment but there’s no history of anyone making money on it,” he said in an interview with the Brisbane Times.

Harvey Norman operates 173 stores nationally, but until now its online presence has been limited to a product catalogue offering pricing and information but no e-commerce function.

Harvey has said the timing was right for an online venture even though this would steal sales from the chain’s bricks and mortar stores.

“By this time next year you’ll see Harvey Norman with a pretty sizeable internet presence. My heart’s beating very strongly on whether we make any money out of it,” he said.

Harvey’s move comes on the back of Myer’s foray into online retail, the much-maligned myfind.com.

Neha Kale

Article by

Neha is a writer and editor for The Media Pad, publisher of Power Retail. She has a background in business, arts and film journalism and an interest in new media and digital strategy. She is looking forward to exploring how retailers are impacted by the online space for Power Retail. Neha is a magazine junkie whose other addictions include coffee, travel and live music. She likes to run but has a long-time allergy to team sports.

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4 Comments

  • Gerry, firstly, congratulations and may this be a good exponent of an e-commerce venture- your customers are demanding it.

    If it helps your blood pressure, treat this as you would any of your bricks and mortar stores in every aspect and if you can get the end-to-end customer experience right, I have every confidence that you will be well pleased with the results

    Reply
  • Poor Gerry, he’s like a cowering old dog being threatened with a stick. I guess from the lack of comments that everyone has reached the same conclusion that if he doesn’t want to hear or see some facts then won’t – just a waste of time trying.

    Walter @adamson

    Reply
    • Belinda Caporaso
    • 1st April

    I think it’s great to see Gerry finally embrace an online shopping cart. Yes, it’s a little late but better late than never. If anything, the stores are going to benefit from this, which is great! My sources at Harvey Norman tell me the sale of the goods purchased is allocated to the store nearest to the consumer’s postcode with fulfilment being done from that store. It’s a win-win for everybody and will support the franchisees.

    Reply
    • Your mail is right Belinda, and these store attribution models for managing channel conflict have been around for a while – more multichannel retailers should embrace them. We think it’s outstanding to see Harvey Norman venturing online, I’m just consistently amazed at Gerry’s public commentary – but he’s a billionaire, and I’m not.

      Reply

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