Harvey Norman sales soar during pandemic

Home and consumer electronics retailer Harvey Norman has underlined the strength of key segments of the retail sector during the coronavirus pandemic.

Michael Spencer at the Harvey Norman Fortitude Valley store in Brisbane. Picture: AAP

Home and consumer electronics retailer Harvey Norman has underlined the strength of key segments of the retail sector during the coronavirus pandemic with shoppers rushing its Australian stores to generate an almost 20 per cent increase its in sales.

Harvey Norman has also surprised shareholders Wednesday morning with a special dividend of 6 cents per share, payable on June 29 to shareholders registered as at June 23.

It comes after in April Harvey Norman decided to cancel its planned interim dividend of 12 cents per share, saving itself almost $150m.

At the time the interim dividend was revoked because of the growing coronavirus pandemic and the uncertainty in the economy.

In a trading update on the performance of its global network of stores since the beginning of the year, the retailer did however report falling sales in its stores in Slovenia, Croatia, Malaysia, Singapore, New Zealand and Northern Ireland as store closures and government regulations on social distancing saw some stores close and shopping centres resemble ghost towns.

Harvey Norman’s flagship Australian stores performed better however with first half sales growth of 0.1 per cent rocketing to growth of 17.5 per cent for the second half to date. For the full financial year to date sales for its Australian franchise stores were up 7.4 per cent.

Harvey Norman said two franchised complexes in Tasmania were closed for two weeks due to a mandated closure of the region by the Tasmanian State Government.

All other Australian franchised complexes remained open throughout the COVID-19 pandemic.

“Our brands have serviced the essential needs of customers and will continue to provide great service to our loyal customers as we navigate these uncertain times,” the company said.

Harvey Norman said government decrees saw many stores across its network in New Zealand, Malaysia, Singapore, Ireland, Northern Ireland and Europe close between March and April.

This had an impact on sales with sales in the second half to date down, in Australian dollars, 38.2 per cent in Northern Ireland, 21.7 per cent down in Singapore, down 7.3 per cent in New Zealand, down 5.5 per cent in Slovenia and Croatia, up 1.3 per cent in Malaysia and up 25.4 per cent in Ireland.