Gerry Harvey slams online retail, mining taxes and politicians

Published on Tue, 20/03/2012, 09:09:51

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By Patrick Avenell

Harvey Norman chairman Gerry Harvey has used an interview on ABC TV’s Lateline (Monday 19 March 2012) to declare online trade irrelevant, criticise the mining tax as irrelevant and to promote his company’s pro-Australian made furniture policy.

Harvey’s key claims in the interview:

-There are negligible online furniture, bedding or whitegoods sales in Australia:

“If you want to go into furniture – we’re the biggest in Australia, if you want to go into bedding – we’re the biggest in Australia, the sales on the internet are zilch, or so close to it, it doesn’t matter,” said Harvey.

“Whitegoods – refrigerators, washing machines, all that sort of thing – there’s no internet sales in the world on that to speak of.”

-Harvey Norman is the country’s biggest supporter of local manufacturing:

“We’re out there supporting Australian manufacturers all the time, trying to keep the furniture industry going in this country. We are the only furniture and bedding retailer in Australia that’s really supporting Australian manufacturers to keep them going.”

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-The Federal Government’s tax increase on mining companies and decrease on small business will not make an impact.

Harvey’s logic here is that cutting a small business tax rate from 30 per cent to 29 per cent will not affect profitability. He says a better way to help small businesses would be to remove unnecessary bureaucracy from the small business landscape, enabling these business people more time and freedom to improve their efficiencies.

“I know people working 80-to-100 hours per week – they’ve got all the forms to fill in, they’ve got all the government regulation – it’s never-ending; you just work, work, work; and you think to yourself, ‘Am I ever going to get out of this?

“Every year I hear the politicians saying they’re going to cut the red tape for business – they never cut it.”

Harvey concluded by saying that although he has had many conversations with politicians in his life, he can't remember a time when these politicians enacted any laws to benefit him or his business.




It completely amazes me how much he doesn't get it. Just because you may not exchange money via an online site for a bed or couch or washing machine doesn't mean you can't utilise your website to "sell" the product and bring people into your store to purchase. 'Clicks to bricks' Gerry... look it up ;) Now if your site is crap, and it's hard to find prices, or the pictures are small or too sparse, or the content doesn't tell me detailed measurements, etc. then users will leave and be on to the next. You've essentially lost a potential in-store purchase. It's not JUST about online, the future is in an integrated experience.
Posted by Meghan. 20/03/2012 03:07:19 PM
Has anyone asked John Winning about the "no internet sales of whitehoods in the world to speak of.” I thought appliances on line was meant to be a little goldmine for Winnings? I know HN staff refuse to match his prices under their Price Match Policy ?
Posted by Trev. 20/03/2012 03:12:22 PM
Its a sad fact that over the next 5 years the Australian retail industry will lose 118,000 jobs to online shopping, how does that affect you and all the retail were you live? how many of you have kids and family members working in retail? you could be the next one that becomes unemployeed because your local business closed down thanks to online shopping, are you prepared for the banks to reclaim your house and assests because you town or local retailer closed, because of lack of support from you local community? "THINK ABOUT IT"
Posted by Matt Hogan. 20/03/2012 04:08:53 PM
I work for a major retailer, I have to deal with price matching all the time with internet prices, it is just how the retail environment is... When I want anything I want the best possible price.. The only thing I think that should be considered when it comes to online purchases is transparency.... offer for offer- price for price. It should make it a fairer playing Online retailers should have full disclosure of product warrantmanufacty How to claim warranty on purchasing page plus if the product is greamanufacturket If it has local support from
Posted by jason. 20/03/2012 07:16:47 PM
Online buying is the future whether we like it or not. When i wish to purchase an item the first place i look is online as it is easier and cheaper than going back and forth from shop to shop price matching. Unfortunatly the savings from online shopping is better off in my pocket. I have been in the appliance service industry for over 20 years and it is amazing just how little knowledge some of the staff have about the products they are selling. Sorry but if there is money to be saved online for me is the only way to go.
Posted by Scott. 21/03/2012 01:14:39 PM
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