Harvey Norman will open an 11,000 square foot computer factory outlet on the site of its former flagship store in Auburn. The Factory Outlet and Clearance Centre will typically offer consumers discounts of between 25 and 85 per cent on IT&T equipment, sourcing unwanted stock from its vendors at bargain prices and passing those savings onto the customer.
Auburn is fast becoming Sydney's retail hub, with both Harvey Norman and Coles Myer opening new concept stores in the suburb in the last few months.
In July the retail giant moved into a $50 million superstore across the road from its former flagship site, leaving the old premises ripe for new projects.
The new business is an extension of Harvey Norman's commercial division, which for the past two years has been operating a second-hand superstore alongside the computer factory outlet in Auburn. The second-hand business has also become part of the factory outlet and will account for approximately 15 per cent of the anticipated revenue of the new operation.
"We have a number of suppliers who want to clear stock from time to time, but they haven't been able to give it to Harvey Norman because you can't give it to one Harvey Norman store and not the other," franchisee Lev Orosz told ARN. "The long-term picture is to make the concept national."
The store will open its doors on October 22 and will officially launch in early November, in time for the Christmas season.
Orosz, who was previously 2IC at the Maribyrnon store in Melbourne, has spent the past 16 months setting up the Sydney operations.
For more on Harvey Norman's plans, see this weeks issue of ARN.