Harvey Norman to open 50 more stores in Malaysia
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Australian furniture and appliance retailer Harvey Norman plans to open 34 stores in Malaysia, taking its network there to 50.
In a commentary accompanying the company’s recent Australian results filing, Harvey Norman said it was planning substantial investment outside Australia where markets offered greater growth potential.
The company indicated it would open as many as 18 of its own stores overseas by 2020, taking its offshore network to 107. More stores would likely open on a franchised model.
Malaysia is a primary target given the country’s population has been growing at a rate of 400,000 people per year since 2010 and currently totals about 32 million. It believes the market can sustain 50 Harvey Norman stores by 2023.
Asia stores accounted for about AUD$500 million (US$362 million) in sales in the latest financial year.
Questions & Answers
Q.How many new Harvey Norman stores will be company-owned versus franchised in its overseas expansion plans?
How many new Harvey Norman stores will be company-owned versus franchised in its overseas expansion plans?
Harvey Norman intends to open 18 of its own stores overseas by 2020. More stores beyond this number are likely to operate under a franchised model, rather than being company-owned.
Q.What specific factors make Malaysia an attractive market for Harvey Norman's expansion?
What specific factors make Malaysia an attractive market for Harvey Norman's expansion?
Malaysia is a primary target due to its population growth of 400,000 people annually since 2010, now totalling around 32 million. Harvey Norman believes this market can sustain 50 stores by 2023.
Q.What was the total sales revenue generated from Harvey Norman's Asian stores in the most recent financial year?
What was the total sales revenue generated from Harvey Norman's Asian stores in the most recent financial year?
In the latest financial year, Harvey Norman's stores located in Asia generated approximately AUD$500 million in sales. This figure converts to US$362 million.
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