Smh:
BETTER buying power fuelled by the surging dollar could see profits at the electronics and furniture retailer Harvey Norman grow as much as 35 per cent in the first half of the fiscal year.
But executive chairman Gerry Harvey said he would not pass on the savings to shoppers because prices were already falling.
“Margins are always under pressure, this is a very tough market,” he said.
“What is happening is all these prices have been dropping over the last couple of years; you might sell 50 per cent more plasmas than you did last year but you make less money.”
“We are very competitive,” Mr Harvey said.
Yesterday the company said profit was set to grow twice as fast as sales.
Sales between July and September grew 12 per cent to $1.4 billion and profit was expected to grow between 25 and 35 per cent.
The company has 245 stores worldwide, 53 company-owned stores and 192 franchised stores.
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