Dick Smith’s four airport Move stores are being weighed up by Harvey Norman.
HARVEY Norman is eyeing off four of collapsed retailer Dick Smith’s Sydney airport stores.
The four Move stores, which sell high-end “fashion” electronics accessories, continue to trade while the other 10 Move stores and remaining Dick Smith outlets are set to close.
The Australian Financial Review reports Gerry Harvey is crunching the numbers on whether he can make the stores profitable.
“Every time I’ve looked at an airport business I’ve always run away because the rents and overheads are horrendous,” Mr Harvey told the AFR.
“It’s not generally the sort of place I’d like to be, but you have to look. At this stage we’ll just have to figure out how they make money. They turn over a lot but if they don’t make any money it’s not worth it.”
On Friday, Harvey Norman stunned the market with its first half profits — up 30.7 per cent to $185.5 million. “We have hit a little chord the others haven’t hit and now we are going to fly,” he said.
Mr Harvey is also reportedly interested in a number of Masters locations. “They’re very big sites and a lot are in difficult places and a lot are where we have existing stores, but the cost of converting them to Harvey Norman is not that expensive,” he told the AFR.
Executive chairman of Harvey Norman Holdings, Gerry Harvey.Source:AAP
Last week, receiver Ferrier Hodgson announced it was closing down Dick Smith stores after it failed to find a suitable buyer, with around 2500 staff affected.
Flight Centre extended a lifeline, offering to help former sales staff into sales consultant or support roles in the travel industry.
Dick Smith earlier announced a fire sale across its 301 stores in Australia and New Zealand with items expected to be reduced by 20-40 per cent.
Consumer group Choice spokesman Tom Godfrey said shoppers should be wary of getting caught up in Dick Smith’s “trail of destruction”.
“Often, fire sales aren’t great for consumers,” he said. “I’d advise people to be careful. While it seems appealing, you’re essentially foregoing your consumer rights.”
Mr Godfrey said consumers should target name-brand products such as Apple and Samsung, which are protected by a manufacturer’s warranty, and avoid all Dick Smith-branded items.
News.com.au has contacted Harvey Norman for comment.
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