Harvey Norman, the Australian retail giant, is accelerating its expansion plans in Asia, with a focus on Malaysia. The company aims to open 80 stores in the country, a significant increase from its current count of 15.
This move comes as the company’s profits fell by 19.4% in the first half of the financial year, due to the impact of the COVID-19 pandemic on the retail industry. Harvey Norman is shifting its focus to offshore expansion, with plans to open more stores in Asia, Europe and the UK. The company currently operates in countries such as New Zealand, Ireland, Slovenia, Croatia and Malaysia, and aims to expand its presence in the European market through the acquisition of existing retailers.
According to the CEO of Harvey Norman, Gerry Harvey, the company sees huge potential in Malaysia due to its strong economic growth and increasing consumer demand for home appliances and furniture. “We see Malaysia as a key market for us, and we are committed to investing in its future,” Harvey said.
The company plans to open a mix of large-format stores and smaller outlets in shopping malls across the country, with a focus on offering a wide range of products at competitive prices. In addition, Harvey Norman is investing heavily in e-commerce to cater to the growing demand for online shopping in Malaysia.
The company’s expansion plans in Asia are part of a broader strategy to diversify its revenue streams and reduce its reliance on the Australian market. Currently, the Australian market accounts for more than 80% of the company’s revenue, but the company is aiming to reduce this to 50% over the next few years.
Harvey Norman is not alone in its push to expand in Asia. Other Australian retailers, such as JB Hi-Fi and Super Retail Group, have also been eyeing the region as a source of growth in the face of a challenging domestic market.
Overall, Harvey Norman’s plans for expansion in Malaysia signal its commitment to tapping into the potential of the Asian market and diversifying its revenue streams. With its focus on offering a wide range of products at competitive prices and investing in e-commerce, the company is well-positioned to capture the growing demand for home appliances and furniture in Malaysia.
Despite the challenging retail environment, Harvey Norman’s online sales saw a significant increase, with a 43.4% rise in online sales for the first half of the year. The company also reported a 13.4% increase in total sales, driven by growth in its international operations.
Harvey Norman’s chairman, Gerry Harvey, remains optimistic about the company’s future, stating that the retailer is well-positioned to navigate the challenges ahead and take advantage of growth opportunities in new markets.
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