Harvey Norman

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Harvey Norman Holdings Ltd.^[1]

Type	Public (ASX:HVN)
Founded	Auburn, Sydney (October 1982)
Headquarters	Homebush West, Sydney, Australia
Key people	Gerry Harvey, Chairman/Co-Founder Ian Norman, Co-Founder John Slack-Smith, Chief Operating Officer Kaite Page, Managing Director Chris Mentis, Chief Financial Officer
Industry	Retail: Computer, Electrical, Furniture and Bedding goods
Employees	Est. 10,000 (Australia Only) 407 (Homebush West Headquarters) (September 29, 2006)
Website	Harvey Norman Homepage

Harvey Norman is a large Australian-based retailer of electrical, computer, furniture, entertainment and bedding goods. It is effectively a franchise and the main brand owned by Harvey Norman Holdings Ltd. Currently there are more than 160 Harvey Norman stores in Australia, New Zealand, Slovenia, Republic of Ireland, Malaysia and Singapore.

Harvey Norman Holdings Ltd control other prominent Australian retail chains such as Domayne, Space Furniture, Ariston Appliances and Joyce Mayne.^[2]

1 History
2 Company structure
3 Controversies
4 Home renovations
5 Move into stationery
6 Sponsorship
7 References
8 External links

[edit] History

Gerry Harvey and Ian Norman opened their first store in 1961, which specialised in electrical goods and appliances. Its success prompted Harvey and Norman to expand the business and conducted talks with retailer Keith Lord who sought to expand his own retail group. They could not settle on a name for the new business, with Harvey and Lord reluctant to take on the other's name. They eventually decided to retain Norman's name and that of its first store manager Peter Ross. This spawned the retail chain Norman Ross. ^[3]

Norman Ross became one of the largest appliance retail chains and by 1979 controlled 42 stores with sales exceeding $A240 million. In the early 1980s Alan Bond and Grace Bros. sought to acquire the chain, spawning a bidding war that saw Grace Bros incorporate the chain in 1982. Three weeks later however, a determined Alan Bond successfully convinced the Grace Bros. director Michael Grace to sell the chain to Bond. Shortly after, Harvey and Norman were given notice and redundancy package of six months pay. Reasons for their sacking were not publicised, although Gerry Harvey later told Sydney's Daily Telegraph:

"I said I wished Bond would pack up his marbles and go back to Perth. Then I got a telegram telling me I was sacked."^[4]

Harvey and Norman purchased a new shopping centre in outer Sydney suburb Auburn for $A3 million and began the first Harvey Norman store. It was originally intended as a single store but its success led to the opening of others. Harvey Norman Holdings Ltd. was listed on the Australian stock market on September 3, 1987.

In the early 1990s Harvey Norman adopted the superstore format then successful in the United States and entered the computer and furniture markets. Harvey Norman growth came organically until it acquired Joyce Mayne in 1998. Further acquisitions followed and by 2000 the chain had 100 stores. ^[5]

A Harvey Norman superstore in Australia.

[edit] Company structure

Harvey Norman's operating structure is unusual in that each store department (bedding, furniture, computer or electrical) is operated by a separate franchisee. Thus many superstores are a combination of three separate businesses with each franchisee contributing revenue to Harvey Norman Holdings Ltd through lease payments and a portion of sales.

This structure that can frustrate unfamiliar customers.^{[citation needed]} For example, an employee in the computer department is generally not permitted to assist customers in the furniture and electrical departments. Camcorders and digital cameras are a common source of customer confusion as while thay may be displayed in the same cabinet, they are sold by different businesses within the store.^{[citation needed]} Customers also need to purchase items separately by department.^[6]

Harvey Norman as is today on Queen Street Mall, Brisbane, Queensland, Australia.

Harvey Norman pays commissions to all full-time staff, some experienced casual and part-time employees. In addition, salespeople are often given incentives to sell particular products through promotions by particular manufacturers and managers.

[edit] Controversies

In 2000 before the Australian implementation of the Goods and Services Tax the ACCC alleged that Harvey Norman advertised Quicken Quickbooks for $199 with bonus software valued at more than $900 while aware that the quantities of bonus software were insufficient to meet consumer demand. Harvey Norman was also alleged to have misled consumers regarding tax benefits associated with the purchase of Quicken Quickbooks and digital cameras. ^[7]

In 1995 the ACCC acted against Harvey Norman for knowingly distributing a catalogue which included more than 20 errors. These included illustrations of sale items with incorrect accessories or functions and packages describing features that it did not, in fact, actually have.^[8]

[edit] Home renovations

Harvey Norman Design and Renovations is a subsidiary of the Harvey Norman Holdings Ltd.. The design and renovations arm of the company specialises in bathroom, kitchen, wardrobe, home office, bars and home theatre renovations, and features showroom franchises in three states of Australia, Victoria, South Australia and New South Wales.

[edit] Move into stationery

In August 2007, market analysts suggested Harvey Norman would launch a rival "big-box" stationery and office supplies competitor to Officeworks before June 2008. Harvey Norman has registered the brand name "Ofis" and as a result of the acquisition of former Megamart and Retravision stores has access to well-placed potential sites on which to open Officeworks-sized outlets.^[9] In December 2007, Harvey Norman announced it would be opening its first two Ofis stores in Albury and the Sydney suburb of Auburn in March 2008. It aimed to have 100 stores within ten years. ^[10]