Another Harvey Norman store closing down

tooblue on 31/05/2013 - 13:03
Last edited 05/06/2013 - 00:16 by 1 other user

Saw the sign out of HN Brisbane CBD store that they are closing down at the end of June. This is the third time I saw electical stores closing down following DSE in CBD and HN in indooroopilly. Although we bag on the retailers much of the time, it is not good for consumers to see the stores closing down one by one.

Sometime I wonder why they rather close down than adapt? Take HN, I did make a few purchase in their store, mostly on clearance at less than half of the original price. Most of time the items in the clearance bins are still much more expensive than online or other retailers. For the recent TOSHIBA USB deal, if HN was willing to reduce the price when 4GB USB Stick still sells they wouldn't have clear them at $0.99 (http://www.ozbargain.com.au/node/105016).

MOD: It appears that the shopping centre, Broadway on the Mall, is shutting down for a full refurb. Please see the clarification following this sub-thread. Thanks to @gigglebot and @brucefromaustralia.

Electrical & Electronics

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Harvey Norman
Harvey Norman

Comments

  • sauce2k6 on 31/05/2013 - 13:52
    +3

    All part of woolowrths master scheme. Undercut everyone until all business are closed down or bought out by woolworths. Then they can dictate the price as they like.

    • battler on 31/05/2013 - 15:11
      +3

      so how exactly do woolworths compete with HN & DSE (in so far as they can undercut them)?

      • sauce2k6 on 31/05/2013 - 21:56
        -4

        Woolworths own DSE :)

        • snappy1234 on 31/05/2013 - 22:01
          +5

          DSE is no longer owned by Woolworths.

        • cheepwun on 01/06/2013 - 16:55
          +1

          Anchorage Capital - owners of Dick Smith stores.

  • arcticmonkey on 31/05/2013 - 16:19
    +4

    People are quick to rush and buy online from tax avioders who send jobs offshore. Little do they realise the long term damage which will be a lower quality of life, lower wages, less businesses paying tax for healthcare and education, and less jobs.

    • tooblue on 31/05/2013 - 16:35
      +13

      "Survival of the fittest"

      You don't adapt, you die. Let's be realistic, how can you expect consumers to pay more for the sake of the giant retailers?

      Let's ban all Chinese goods and see what's you qualilty of life then.

      • tonyjzx on 01/06/2013 - 04:46
        +6

        i have the view that Gerry Harvey's enterprises are a one way relationship with the Australian public

        really the guy flogs badly priced electricals to numptys on flexirent by hiring one note morons

        is this a good example of a type of company that one should have any loyalty to???

        to be fair you could level the same argument to colesworth

        Gerry's operation could go bankrupt overnight and really… so what?

        Gerry holds YOU the avg. consumer in contempt so why would you honestly care?

      • [Deactivated] on 01/06/2013 - 10:26
        +8

        Yes please! I'd have less money, but far better goods. ;-p

        We still own the Black & Decker rice cooker we received as a wedding present in 1993. That's 20 years and counting.

        Our Hoover washing machine is over 20 years old.

        I remember my parents/grandparents still using 1960s black Sunbeam (or was it G.E.!?) steam irons into the late 1980s. But now, my wife buys a new Sunbeam iron every year or two because they always die.

        About 15 years ago I snapped up a hardly-used 1960s 9B Sunbeam Mixmaster (like this: http://www.ebay.com.au/itm/280790834621) at a garage sale for $4. My wife uses it regularly.

        • Macgyver on 03/06/2013 - 12:20

          Yep I agree. Australia used to make everything here and the products last for ever.

          I still have a Black and Decker drill probably 40 years or more old still running like day one. A other that fell off a roof I think(it was smashed up real well) still working like day one.

        • geek001 on 05/06/2013 - 10:55

          You see.. products that lasts forever is a problem for retailers. If your appliances don't fail means you don't need to go back to the shop to buy new appliances.

          It is far more profitable for retailers to sell cheap and nasty appliances to make sure you come back after the warranty runs out. The same goes for manufacturers, some of them are out of business because their products are so good that no one ever needs to buy a second one.

    • Geewhizz on 01/06/2013 - 05:35
      +3

      arcticmonkey, you've hit the nail on the head.

    • [Deactivated] on 01/06/2013 - 10:12
      +6

      It's ironic HN closing down is seen as a negative, when two/three decades ago, chain stores opening was the negative.

      Chain stores have been progressively oversaturating areas for years. Drive though any reasonably populated area in Australia and you'll see the same stores, over and over again, all within a few km of each other. Then they open another one nearby. Just where do they think the new customers are going to come from? People that USED to shop at the other store 2km down the road, that's where. No new customers are created. It's just transfering sales from one store to another.

      JH and others like him blame online sales, when I believe the greater cause is spreading their customers too thin by opening too many stores.

    • cheepwun on 01/06/2013 - 17:02
      +2

      Amazon avoids tax.
      Google does too.

      I wouldn't be surprised if Gerry Harvey does all he can to avoid it.

      Anchorage Capital - owners of Dick Smith - I'd be very surprised they don't take advantage of every tax loophole in their power to get where they are.

      The local arms of huge Japanese and Chinese companies…I'd be surprised if they don't do evrything in their power to avoid paying tax too, including shonky business.

      The manufacturers themselves; same deal.
      The taxes that are paid go to support the death and destruction of sovereign nations and our superannuation does the same thing.

      So how can we avoid the crooks?
      Answer: we can't.

      Let people shop where they want. I don't believe paying more taxes brings us a better quality of life; I believe it allows the looters to continue looting some more, justifying any shortfall in taxes on us, and continuing to justify their increasingly criminal behaviour and wars with lies.

    • Bunnyburger on 03/06/2013 - 13:37
      +2

      I'd rather pay for my own healthcare and education than pay double/triple for everything in hopes that my tax money will trickle down to the right spot.

      • cheepwun on 04/06/2013 - 09:21

        Exactly!

  • freemoneyhunter on 01/06/2013 - 07:21
    +6

    I do not support local retails, I used to work in retail and it sucks. It is just buying for $1 and selling for $2, they do not provide any value besides putting a product on a shelf.

    The future is online, you simply buy online and it is delivered to you, there is no need for a store front any more.

    • cloudy on 04/06/2013 - 08:02
      +2

      For electronics yes, not for a lot of other stuff though.

      Oh I might add, you once had the opportunity to work for retail, presumably when u were young and needed some cash. I wonder when all retailers close like uwish, what our youth will do.

      What u don't see my naive friend is online retailers do no different, they just have a smaller margin coz they have lower costs, no taxes to pay and even shipping into Australia is subsidised by Australia post. We literally whack our own business with a stick and hand out to anyone retailing in. Our taxes indirectly pay.

      • davedrastic on 04/06/2013 - 21:28

        What will our youth do? Get a job in a new industry, for example with an online retailer.

        I don't think you have any cause to suggest that our naive friend fails to see that online retailers are any different. On the contrary he seems to recognize they are fundamentally the same. They shift boxes.

        And by the way, smaller margins are generally beneficial to the consumer, and lower costs are generally better for all parties.

    • BlackV8SS on 04/06/2013 - 09:31
      +1

      Try buying a couch online and not having a store front to try it.

      • [Deactivated] on 04/06/2013 - 11:27
        +1

        or a car lol

        • dsp26 on 04/06/2013 - 21:23

          Also bought one of my cars on ebay.. was in awesome condition… contacted the seller, inspected the car, paid him $1000 deposit and wrote a contract for $10,000.. because it was an auction, he said just keep bidding until i win… i ended up competing with one other and 'won' it at just over $15k

        • davedrastic on 04/06/2013 - 21:30

          Pretty sure BMW have been selling cars online. As well as other manufacturers. It will become the norm before long. And that is not a bad thing.

        • dsp26 on 05/06/2013 - 13:30

          That should be the norm.

          Visit manufacturer website and research specs and model options.

          Send an email to all the dealers (NOT CC/BCC) and ask for the best price. Guaranteed the ones who could be stuffed will give you the best price knowing who their competing with.

          Online Shoppers are smart shoppers!

          Plus I went into the CBD HN… rubbish stock.

      • dsp26 on 04/06/2013 - 21:21

        Bought my couch of a private importer who advertised on gumtree… very unique stuff.. visited his storage/warehouse to try it and he delivered it.

  • gigglebot on 01/06/2013 - 07:51
    +5

    I was under the impression this is because Broadway on the Mall is about to be shut down for a full refurb. The owners are the same as Wintergarden.

    Not sure if you noticed but it's basically empty of vendors on the first and second floors now (they've just kept shops near the entries so the building doesn't look abandoned).

    • INFIDEL on 02/06/2013 - 16:31
      +3

      True. But no one here seems interested in the facts.

      Details:
      http://www.ozbargain.com.au/node/104837
      Harvey Norman in Brisbane CBD is closing down due to the building managers wanting to refurbish the area. They have no were to go so they want to get rid of stuff instead of transferring them.

      http://www.ozbargain.com.au/node/104883
      Barkins - Women's clothing store is having a closing down sale in the Broadway on the Mall store - Brisvegas

      So nothing really to do with HN, as small retailers are closing (possibly temporarily).

      Only the OP, you , chaubii & I are from Brissie! Don't know what a store closing due to building renovation in Brisbane has to do with people in Sydney, Melbourne, or Perth???

      They are more interested in pushing their point of view. What has internet sales, Woolies "masterplan", tax avoidance, hatred of big chains, etc, got to do with tarting up a building?

    • BlackV8SS on 04/06/2013 - 09:32

      HN is in a bad spot on the mall anyway. No one wants to travel up to level 3 of a near empty shopping centre just to look at some electrical goods. It was only a matter of time.

      • INFIDEL on 04/06/2013 - 10:04

        Agreed. That didn't work 30 years back when the building was new. Building design won't be the same when it reopens. HN may be back then, or relocate.

  • PcisT on 01/06/2013 - 23:30

    Retail stores with rent and wages can't beat discounting done by online stores. Some may have a few loss-leaders to make them "appear" cheap, but it's not maintainable long term.

    Can you think of any business which has a location operating at prices (across the board) less than online? If you actually can, keep it to yourself and open up an online equivalent and you'll make $$$.

    I predict in the future it would be a luxury to visit a store with staff to help and products to touch and see in front of you - people will be more than happy to pay normal prices, or in some cases entry fees will be charged (and maybe used as credit).

    • Weezle on 03/06/2013 - 00:13
      -1

      Do you realise online stores still have to pay rent and wages? They can't just store inventory in thin air and not pay staff that operate the business.. msy is an example of a business that had cheaper prices than many online computer etailers..

      • PcisT on 03/06/2013 - 20:27
        +1

        Obviously I mean in relative. You are talking about up to and above $1000 per sqm in a shopping centre as opposed to $100 per sqm or less in a industrial zone.

  • wtfnodeal on 02/06/2013 - 00:13

    I thought helping Australia is supporting local manufacturers not local retailers? It is the value adding parts create snow ball effects?

  • Cheeper on 02/06/2013 - 10:46
    +1

    When you consider the investment, the employment and other things that bricks and mortar retailing provide it may be beneficial to implement some sort of tariff on the internet retailers to even the playing field.

    We all like the opportunity to buy extra cheap but at what cost?

    • cheepwun on 02/06/2013 - 12:02
      +6

      There will never be an even playing field. A tarriff would be great to put more money in the politicians hands; people who don't work for it.

      Evening the playing field would be best achieved by closing tax loopholes so Google, GE, Amazon, Starbucks (a bricks-n-mortar store!) and others can start paying taxes (and probably Harvey Norman and Westfarmers and so many other corporations too).

      But we all know that will never happen, and we all know a level playing field doesn't exist. If you buy more from a wholesaler, you get price breaks too. That in and of itself means an uneven playing field. He who loots the most wins.

  • scaredyet on 02/06/2013 - 10:49

    This is very good news on a rainy Sunday morning

  • chaubii on 02/06/2013 - 11:23
    +1

    But if all the NH's close down where am I gonna showroom for electronic stuff now?

  • LSGH on 02/06/2013 - 17:10

    maybe because the building they are in the Brisbane CBD is really old? I noticed several of the other clothing shops have closed already (ever since the new Wintergarden opened across it)

  • liverpool2009 on 02/06/2013 - 20:27

    I am all for Australian stores. But I wouldn't worry too much. More store closing = rents coming down and eventually another will replace it.

    • INFIDEL on 02/06/2013 - 20:36
      +2

      LOL! Not in this case. Building is being renovated to attract more expensive shops paying higher rents. Tenants were moved out. HN couldn't find suitable space as Brisbane CBD retail is rare & expensive. HN may relocate or move back. (I owned a business in the build next door.)

    • cloudy on 04/06/2013 - 07:54

      Rents in my local suburb is almost free, I don't see retail shops opening up… Rents doesn't = business. It's only one factor.

  • INFIDEL on 02/06/2013 - 22:55
    +1

    OP, when was the CBD DS closed? Queen St is the only one - so it's closed? New owners are rationalizing stores to cut costs, as Woolies did.

    The Elizabeth St store was closed a long time back, after the then new Queen St store opened a block away, moving to a better location.

    Similarly, the HN may relocate or move back after the extensive building renovations. It was forced to close by building owners.

    Still, stores need to return a profit & expensive locations often don't help.

    • INFIDEL on 03/06/2013 - 14:42

      The CBD DS closed?
      Queen St is the only one - & it's NOT closed

  • goyourself on 03/06/2013 - 11:42

    Good. My Harvey and tricky dicks have been the great Australian rip off for years.

    • INFIDEL on 03/06/2013 - 12:16
      +2

      Why would a person in the NT (or other interstate locations) rejoice or even be interested in the (possibly temporary) closure of a store in Brissie due to building renovations? Weird!

  • INFIDEL on 03/06/2013 - 12:47

    My local OW & Rebel Sports in Garden City, Brissie has also closed.
    It's a construction site.Probably due to another expansion of the massive Westfield.
    $400m redevelopment … Garden City will be 141,000m2 upon completion and boast a new Town Square, inspiring fashion and fresh food with approximately 100 new specialty stores, Myer and Target.

    And my local Post Office closed. Maybe due to that Westfield Carindale redevelopment…
    $300 million redevelopment which added approximately 22,000 sqm of retail to the centre

    And that Indooroopilly HN the OP posted about…
    Indooroopilly shopping centre is set for a major facelift, with a $450 million expansion … and work had started on the 30,000 square metre addition… by April 2014.

    No, I'm wrong! Nothing to do with redevelopment boom in Brisbane. This is the internet, where theories overruled fact!!

    It was due to internet shopping, tax rates, and conspiracies :-)

    • INFIDEL on 03/06/2013 - 13:51
      +1

      As for HN in the Broadway shopping center…
      a complete redevelopment of Broadway on the Mall after it acquired the rundown 30 year old centre in July 2011.
      The construction timeframe of Broadway will most likely coincide with a lot of international retailers Australian expansion plans who have looking for new Brisbane CBD retail space.       http://brisbanedevelopment.com/155-queen-st-redevelopment/

      The CBD DS the OP posted as closed (146 Queen St is the only CBD store in Brisbane) still shows on DS site & I can click & collect there, but is an area up for redevelopment. The old Elizabeth St store closed ages ago under Woolies, after the Queen St store replaced it & lease expired.

      So nothing more than a massive expansion in retail in Brissie & DS is listed as open. So nothing to this post!

      But that's the opposite of the theories :-)

      • beejay1177 on 06/06/2013 - 23:10
        +1

        thanks brucefromaustralia

        The fact that JB Hi Fi can have 3 different locations within Brisbane CBD proves electrical goods are not dead in Brisvegas :)

  • lolmao on 03/06/2013 - 22:03

    i wouldnt care if every shop closed. i only shop online anyway

    • DEvok on 04/06/2013 - 02:03
      +2

      Oh really? How about food and supermarket stuff? I get that delivered? Way to expensive for my taste and costs more for delivery. And you must drive a car? Don't say petrol is also bought online?

    • INFIDEL on 04/06/2013 - 07:27

      Poor you :-)
      Having a choice is healthy.
      But some people have trouble socialising or getting around so the internet is a good tool. But I would not want to ONLY use it like you!! (Guessed you were from Melbourne!)

      Besides, the stores listed by the OP as closed were either not closed / moved to a better location / or closed (temporarily) due to redevelopment of the sites. Hasn't anyone ever seen that before??

      This whole forum discussion is a non issue!!!

  • INFIDEL on 04/06/2013 - 09:19

    For the recent TOSHIBA USB deal, if HN was willing to reduce the price when 4GB USB Stick still sells they wouldn't have clear them at $0.99 (http://www.ozbargain.com.au/node/105016).

    You show a lack of basic retail economics:
    You don't mark down things people would pay good money for.
    You don't sell for less than you paid, plus operating costs.
    And if you get caught with stock no one wants, ignore those rules.
    plus
    If you can get stock for almost nothing (because it is very late in its product cycle), promote it as a wonderful bargain - OBers will buy it even if they don't need it. I did :-)

  • zappa on 04/06/2013 - 11:57

    The last laptop I bought was at computer alliance. Harvey Norman pushing flexirent so hard just creeped me out. Gerry is too focussed on tax IMO.

  • Typical16-bitEnjoyer on 04/06/2013 - 14:51

    Don't everyone panic just yet. CBD stores are notoriously low turnover / performers for big box retailers. Most people purchase from a store near to where they live.

    • INFIDEL on 04/06/2013 - 15:09

      True, but they are not closing! OP got it wrong.
      Just the buildings being renovated, so had to move out for a while.
      Posted above in detail from the developers. Retail development boom in Brissie, thats all.
      And if you were a local you would know Indooroopily is NOT CBD!

  • ankor on 04/06/2013 - 20:50

    A friend of mine was once in training at a place like HN and was in line to be a proprietor, whatever that means.

    He mentioned the dodgy practices that people did in order to get sales, and the way in which they pitched products etc, it was all very… systematic.

    He didn't last very long in the sales role, for while he was near the top of the leaderboard, he just didn't have the personality and dedication for it.

    On a side note, retailers are an important part of our landscape and it would be a shame if they all end up belly-up. While I have no basis for comparison, I have always thought that it was the terms in the lease agreements, rather than staffing costs that really sunk retailers.

    e.g.

    base rent
    percentage rent (percentage of gross, not net)
    marketing levy
    percentage of outgoings
    revision based on CPI

    You may as well be giving the banks the keys to your house.

  • lilaznb0i1 on 06/06/2013 - 00:05
    -1

    wow.. really makes you wonder about how technology is being developed so quickly and is taking over the world, its amazing… no wonder electronic stores are getting closed..one day all electronic stores will probably be closed… besides, with the technology nowadays, who even goes to electronic stores anymore xD

    • INFIDEL on 06/06/2013 - 00:11

      Wrong - these stores are NOT CLOSING! Mistake by OP. It does "really makes you wonder"!!
      Only temporary. Just redevelopment of buildings, if you bothered to read the Mod update & above!!
      Hundreds more stores are to open in these centres, over a $1.5Billion in retail expansion in Brissie & HN won't want to miss out.
      Thats the opposite of the end of retail most are posting. And HN is more than an electronics store.
      Wish OP had done a little thinking / research before posting this rubbish. Nothing to see here!

  • Mastermind on 12/06/2013 - 10:14

    Well that escalated quickly…

    • INFIDEL on 12/06/2013 - 16:24

      And died a while back.
      That's what happens when an uninformed forum topic is posted - people promote their pet theories, rather than realise it was mainly bullshit. You'd think no one has seen redevelopment & expansion of shopping districts before.

      Over $1.5 Billion being spent on just these small retail areas in Brisbane does not signal the demise of retail stores as most posters say!!

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