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Why we don't get Gerry Harvey

feature-harvey-norman-200Gerry Harvey is great media talent. When I first became interested in online retail, I almost immediately became interested in Gerry.

As far back as 2000, Gerry told Ninemsn on a live chat forum “that most of the online business will be conducted by traditional retailers and that over 90% of the eCommerce retailers will in fact all go out of business one after the other”.

In 2008, he famously told SmartCompany that online retailing “is a complete waste of time”. During his short-lived campaign to have GST applied to all goods bought by Australians from overseas websites he said that online retail was “escalating to proportions that are quite unbelievable” and was threatening to put scores of retailers out of business.

By June 2011, he was sanguine: “We find people will order smaller things online, but for bigger items they’ll mostly come to the store, go home and order online”.

You might think this was Gerry changing his mind over time about the implications of online retail. But then I saw this interview on Lateline. If current affairs television consistently reached this level of rollicking entertainment, I would watch it a lot more often.

Gerry came across as a more avuncular and amusing version of Queensland’s late Joh Bjelke-Petersen. It became obvious watching this interview that there was no evolution to Gerry’s opinions on online retail – he held them all simultaneously.

There’s a popular line of thought that Gerry is a dinosaur, a man out of time who doesn’t get the internet. On the contrary, I think that there a lot of people who don’t get Gerry, or perhaps his business, and its complicated relationship with online retail.

When Gerry talks about the internet he is addressing at least two very different audiences. The first is the investment community who want to know that Harvey Norman has a digital strategy, understands “omnichannelling” and is forward focused.

The second are Gerry’s army of franchisees who want to hear that someday this war will be over. All of Harvey Norman’s Australian stores operate as franchises, aside from the recently acquired Clive Peeters and Rick Hart outlets. In the last financial year, franchisee sales revenue fell by 2% and the fees Harvey Norman Holdings received from their franchisees fell 5%.

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