ASX-listed Harvey Norman has reported first half sales of $3.31 billion for the period ending 31 December in an environment of price deflation.
Global sales increased 1.3 percent, but like for like sales decreased 3.1 percent.
Harvey's said a 30 percent price deflation for the half "compromised revenue growth", and described the situation for electrical franchisees as “extremely difficult”.
Computer franchisee sales during the half were influenced by very competitive market conditions and customer caution, which led to increased price deflation for laptop sales, the company reported.
However, electrical franchisees have continued to increase their share of this segment. All other product categories showed good growth which led to increased market share in all segments even after excluding the Clive Peeters and Rick Hart brands.
Electronics competitor JB-Hi Fi reported total sales growth for the same period of 8.3 percent, while comparable stores' sales growth was negative 1.5 percent. It too reported "significant price deflation".
Harvey Norman chairman Gerry Harvey launched The Retail Coalition last month to lobby the Federal Government to amend taxation laws in the wake of strengthening competition from online merchants hosted overseas.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
