Harvey Norman Finally Makes the Online Move

After putting off the the move for years, Harvey Norman (ASX:HVN) will finally go online. The company will sell its furniture and electronic goods from July according to reports.

According to the Australian Financial Review, executive chairman Gerry Harvey aims to drive up internet sales after remaining as a sceptic until recently. “I’ve told my team I want them to turn over $100 million within two to three years and then take it to $1 billion within five to 10 years,” he said.

Details of the plan were released after Harvey criticised the government for allowing costumers to purchase up to $1000 tax free, putting local retailers at a disadvantage. E-commerce insiders have speculated that the company's structure complicated the online move, prompting questions as to who would profit from it.

According to reports, the Harvey Norman website will be a centralised store, shipping goods from local warehouses to customers with the majority of the profits going to its franchise holders.

Its branded site harveynormanbigbuys.com.au, will also expand and may end up competing with its own franchisees. Currently, the website offers a range merchandise that doesn't include electronics and furniture.

“Hopefully I won’t have to compete for five, 10, 20 years because I have to be careful I don’t upset my franchisees,” he said. “I can say I won’t (compete with franchisees online) in the next year or two. But five years is too long a time to guarantee it.”