Australian retailer Harvey Norman may have only landed in England in October, but it’s a brand known to millions down under.
Founded in 1982 and created by founders Gerry Harvey and Ian Norman, the retailer soon built up a strong portfolio of over 190 stores in its native country selling electricals, furniture, tech appliances and bedding.
The decades since have seen it expand into New Zealand, Malaysia, Slovenia, Singapore, Croatia, Ireland and Northern Ireland. And just last month, the retailer opened its first store in England at the Merry Hill shopping centre in Dudley, West Midlands.
While UK managing director Lachlan Roach has only been at the helm for a few months, this was a natural next step for him.
Starting as a Harvey Norman salesman in Dubbo, New South Wales, 23 years ago, Roach has climbed up the ladder from the shop floor to the boardroom, first being a franchisee, then a general manager of home appliances, and a general manager for electricals in Ireland. The next step in the ladder will be heading up the UK business.
“Before we started on this expansion programme, I thought I’d be getting back to Australia,” he laughs.
“This is the next step, and we’re obviously looking to expand our footprint across Great Britain. We already have two stores in Northern Ireland doing well.”
He adds that the UK is set to be a “very, very good market” for the retailer, but emphasises that slow and steady is the right way to go.
Entering the UK
The group’s most recent results show profit before tax for the full year was AUD$542m (£276m), with global annual sales reaching $8.86bn (£4.6bn).
The retailer said it expects to drive sales in the coming years through innovation and AI in home appliances and technology categories with brands such as Sony and Samsung.
Succeeding in an entirely new market is no mean feat, but Roach is prioritising brand awareness through partnerships with media outlets such as News Corp − owned by fellow antipodean Rupert Murdoch.
“It’s going to be a challenge because, from a digital perspective, it’s a bidding war to get your brand further up the pipeline,” he explains.
“We’re going to do a combination of digital, radio, press and TV to make sure we place ads in the right programmes.”
Until this marketing strategy accelerates, most consumers will be aware of Harvey Norman through its 58,000 sq ft flagship in Merry Hill, which Roach says is already seeing repeat customers.
“At the moment, our focus is 100% on the West Midlands,” he confirms.
“The reach is already over four million and it’s great from a supply chain perspective as we have a great warehouse that can cater for a number of stores. We want to make sure we nail that first.”
The retailer’s second store in England will be in Sutton Coldfield with further expansion in the region expected in order to take “full advantage” of the population.
While Roach wasn’t forthcoming on whether Harvey Norman plans to enter Scotland or Wales, it’s clear a nationwide rollout will eventually be on the cards.
Making an impact
If Harvey Norman wants to be a contender in the UK market, it will have to compete with some big names to have any impact and keep expanding.
“We’re coming to the UK because we believe we can add value,” Roach says.
“We can do something a little bit different to what’s already in the market, but we’d have to call out the likes of John Lewis, Currys, Bensons for Beds and Sofology.
“We’re looking at every retailer across bedding, furniture, technology, beds and mattresses, and they’ll be looking at us.”
His faith in becoming successful in the UK follows a pattern of growing a strong store portfolio across Asia and Europe.
He adds that the charm and global appeal of Harvey Norman is due to it catering to a mix of demographics with low-priced and luxury items. He points to the retailer selling a £19 Russell Hobbs kettle and a limited edition Dolce & Gabbana by Smeg kettle for £599.
With Christmas coming up, Roach expects its Merry Hill store to perform well as its global stores tend to trade well in small appliances and tech such as tablets, monitors, phones and gaming products during the festive season.
While it is too early to tell if Harvey Norman will thrive in a new environment or fail to make an impact, its history of global rollouts show it has the means to succeed.
As Roach explains that UK retail parks, shopping centres and high streets could all be targets, we may see a flurry of Harvey Norman stores enter the UK in the long term.
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