KEY POINTS:
Retailer Gerry Harvey is warning that some of the Australian stores in his Harvey Norman empire will close during the next six months because of the economic slowdown.
Sales in all key areas of the business - furniture, electrical and computers - had slumped 3 to 4 per cent in recent months, he said.
Harvey Norman has 192 franchised stores in Australia and 28 stores in New Zealand, as well as outlets in Ireland, Singapore and Malaysia.
The retailer's pre-tax profit fell by 32 per cent in the three months to September.
"We're looking at closing not a lot of stores, but some stores between January and June [2009]," Harvey said.
Harvey told the Herald the company did not plan to close any New Zealand stores. Australia and New Zealand were operating on a par but there was more of a need for closures in Australia, Harvey said.
He told ABC Radio the retailer was looking to open new stores as well. Every retailer in Australia was under stress at the moment.
"I don't think there's one strong person left," he said of his competitors.
Eligible families and pensioners started receiving their share of the Government's A$10.4 billion ($12.7 billion) economic stimulus package yesterday, and Harvey expects some people will spend their cash bonus before Christmas.
"How much, I don't know," he said.
- AAP, staff reporter
