Harvey Norman stores continue to increase sales, despite a fall in the number of franchise complexes in Australia.
The retailer recorded a healthy $211.7 million in profit after tax and non-controlling interests for the year ending 30 June, an increase of $69.48 million or 48.9 percent from the previous year.
The increase was smaller with a significant property revaluation adjustment excluded, but still 20 percent higher, reaching $220.1 million.
While the number of franchise stores in Australia fell from 206 to 198, sales from those franchisees still increased - up $53.59 million to hit $4.77 billion.
Harvey Norman has actually reduced its "tactical support" to franchisees, citing improving sales and profitability of franchises. This reduced spending by $25.27 million for the year.
In addition to the 198 franchise stores in Australia, Harvey Norman's retail activities now include 82 company-owned stores overseas.
The retailer continues to tout its "omni-channel" strategy, and now describes each franchise stores as a "distribution centre". Harvey Norman is also increasingly using analytics to improve offerings.
In the 2015 financial year it plans to roll out a new merchandise, inventory and supplier management system in the hope of achieving a "transformation" in the way sales people "engage with information and interact with suppliers and customers".
Other plans include technology to more efficiently monitor staff time and attendance, and over the long term provide automated, optimised rostering for franchisees that draws upon customer traffic analysis.
The company's results were also underpinned by solid performances by Harvey Norman's property segment.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
