Despite media reports ASX-listed retailer, Harvey Norman (ASX: HVN), will close stores as a consequence of the economic climate, the company claims it is expanding.
Harvey Norman general manager of computers and communications, Luke Naish, confirmed the retailer had shut down its Dubbo and Muswellbrook stores, but said both had a small footprint and were countered by three new stores being opened.
"The stores shut down were old Retravision locations we gained as part of the acquisition," Naish said. "I'm not aware of any other stores that have been earmarked for closure, and we're opening three stores – one in South Australia, Queensland, and a huge outlet in Frankston, Melbourne."
The retailer has also begun releasing weekly like-for-like sales reports via the ASX, comparing the monthly sales figures with those of the previous year. Each of these reports has demonstrated a decrease ranging from 0.8 per cent to 5.8 per cent, and all claim that retail margins remain under pressure due to the economic climate.
This strategy, which aims to indicate to the public the state of retail in Australia, has come under criticism from online retailers that have claimed that strong growth continues.