Harvey said that most product categories within Harvey Norman stores had been affected as consumer sentiment declined,with the metro stores in particular feeling the pinch.
“Our country stores are going better than our city stores... In the city,the cost of rent,electricity,has gone up considerably.”
But he was unfazed about the outlook for his business,saying its competitive position could only improve as online-only retailers struggled in the post-COVID period.
“You look at those online players that were going to take all the business - they are going out of business day by day,across the world,” he said.
Harvey noted predictions that retail juggernaut Amazon would eat into Harvey Norman’s position had also been overblown.
“When Amazon came there was article after article about how Amazon was going to sell all the fridges in Australia. That hasn’t eventuated at all.”
It’s been a challenging earnings season for online-only retailers as companies saw demand moderate from the years of COVID lockdowns. Online furniture seller Temple&Webster posted a 30.6 per cent decline in full-year profit to $8.3 million,while cosmetics retailer Adore Beauty swung to a $500,000 loss.