Harvey Norman boss signals an end to cheap electronics and furniture


Harvey Norman boss signals an end to cheap electronics and furniture and warns price hikes are coming

  • Harvey Norman boss Gerry Harvey, 82, said to expect massive increase in prices
  • Mr Harvey said the era of cheap electronics are over as prices jump 30 per cent 
  • He said recent increase in shipping container costs and limited stocks to blame
  • Harvey Norman saw a 6.2 per cent /  $4.9 billion decrease in sales in December


The boss of furniture and electronic store Harvey Norman has warned recent logistic problems could see the prices of their stock skyrocket.

Executive chairman Gerry Harvey, 82, said the recent price jump in shipping containers could see the prices of electronics and furniture increase by 30 per cent.

‘Shipping containers used to cost $2000, now it’s $12,000 and the prices on your lounge go up by 10 per cent to 20 per cent,’ he told the Sydney Morning Herald.

Executive chairman Gerry Harvey, 82, has warned Aussies the era of cheap electronics is over with prices set to jump by 30 per cent

Executive chairman Gerry Harvey, 82, has warned Aussies the era of cheap electronics is over with prices set to jump by 30 per cent

Customers could see a daily markup in furniture and electronic prices amid ongoing logistic issues

Customers could see a daily markup in furniture and electronic prices amid ongoing logistic issues

‘You name it, no matter what product you come in to buy today, it’s dearer than yesterday, and it will be dearer again tomorrow. Prices are going up by five, 10, 30 per cent.’

The retail giant has built 50 new warehouses around Australia in the last 18 months to help fight stock shortages but Mr Harvey said he believes the era of cheap electronics is over. 

Luckily, he said there is still time to grab a bargain before prices soar. 

‘Customers are coming into our stores at the moment, and we’ve still got a lot of products that are priced a lot cheaper than what we can buy it for at the moment, so we can deal a bit on price,’ he told the Australian Financial Review. 

Executive chairman Gerry Harvey, 82, said the recent price jump in shipping containers from $2000 to $12,000 is to blame for the price increase

Executive chairman Gerry Harvey, 82, said the recent price jump in shipping containers from $2000 to $12,000 is to blame for the price increase

Harvey Norman reported a 6.2 per cent – $4.9 billion – decrease in sales in the six months to December and blamed lockdowns triggered by the Omicron outbreak.

However Mr Harvey said 2022 had started well for the company and hopes its a sign of good business to come.

‘We have started off very well in January/February, which is stronger than we thought,’ he said.

‘There’s no reason to believe at this stage it is going to change, and if it doesn’t, we will have quite a good second half.’ 

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