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· Posted on
February 21, 2024

Harvey Norman has seen its sales ringgit-in thanks to a big boost from Malaysia

Harvey Norman announced a jump in sales for this financial year and it's all thanks to Malaysia.

What's the key learning?

  • Harvey Norman announced that its sales are up 6.9% for this financial year so far, despite all of the concerns around cost of living affecting retail.
  • Harvey Norman's sales in Malaysia have risen 44.5 per cent in the past four months so now they are opening more than 50 stores in Malaysia.
  • Australian retailers expanding overseas is not for the faint-hearted but despite all the red flags before, Harvey Norman still decided on global expansion.

👉 Background: Harvey Norman is the Aussie furniture, bedding, electronics retailer that was started in NSW 40 years ago.

👉 What happened: Despite all of the concerns around cost of living affecting retail, Harvey Norman announced that its sales are up 6.9% for this financial year so far. Not beeehd.

👉 What else: On top of that, Harvey Norman is so confident in future growth thay they are opening more than 50 stores in Malaysia over the next 6 years. It makes sense because sales in Malaysia have risen 44.5 per cent in the past four months.

What's the key learning?

💡Australian retailers expanding overseas is not for the faint-hearted.

  • Country Road and Peter Alexander retreated from a big push in the United States
  • Kathamandu has had mixed success with its overseas jaunt
  • Bunnings failed DISMALLY when they opened in the UK

💡But despite all the red flags before, Harvey Norman have still decided on global expansion. But their approach has been very targeted - South East Asia.

💡 Malaysia has a strong economy, low unemployment and the median age of the population is just over 30 years old. And this might just be the prime age for moving into a new house and looking to go one-step-up from Ikea.

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