Harvey Norman Defends Market Share Amid Growing Competition

Highlights:

• Steady Market Position: Harvey Norman (ASX: HVN) asserts no loss of market share to competitors JB Hi-Fi and The Good Guys, supported by strong internal comparisons in key product categories.
• Mixed Sales Performance: Total sales increased by 1.7% for the four months ending October, with a 3.1% rise in Australian same-store sales but an 8.2% decline in New Zealand.
• Global Expansion Plans: Harvey Norman continues its international growth, with 318 stores worldwide and a new complex slated to open in East Zagreb, Croatia, by 2026.

Rivalry in Focus

Harvey Norman Holdings Limited (ASX: HVN) executive chairman Gerry Harvey has rejected claims that the company is losing market share to JB Hi-Fi Limited (ASX: JBH) and its subsidiary, The Good Guys. Speaking during the retailer’s annual meeting, Mr. Harvey emphasized that internal comparisons across key product categories, such as refrigerators, televisions, and washing machines, show the company is performing well in direct competition.

Harvey Norman differentiates itself with its significant presence in home furniture, an area where JB Hi-Fi and The Good Guys do not compete.

Performance Metrics

At the time of writing, Harvey Norman’s shares have risen by 17% since July 1, climbing from $4.18 to $4.93. In contrast, JB Hi-Fi’s shares surged 48% during the same period, reaching over $91. Harvey Norman boasts a market capitalization of $6 billion, compared to JB Hi-Fi’s $10 billion.

The retailer reported a 1.7% increase in total sales for the four months ending October, with same-store sales up 3.1% in Australia. However, New Zealand remains a challenging market, with same-store sales declining 8.2%.

International Growth and Consumer Trends

Harvey Norman continues to expand globally, operating 318 stores across regions including Ireland, Malaysia, and Slovenia. The retailer plans to open a two-story complex in East Zagreb, Croatia, by 2026.

Mr. Harvey noted brisk Black Friday sales, particularly in high-end appliances like Miele and Breville coffee machines. He highlighted rising operational costs, including wages and electricity, as ongoing challenges for businesses.

In New Zealand, the recent rate cut by the central bank is expected to aid gradual recovery. Mr. Harvey expressed optimism about the country’s prospects under its new government.

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