retailers perfect storm, page-15

@ adventra09.
TV's walking out the doors and traffic flows up does not pay the bills,
its about making money off these sales as the margins are next to nothing on electrical and computers.
Harveys', all retailers are bleeding to death in a price slashing war driven by consumers expecting and indeed needing ever cheaper prices.
The only areas where there are profits to be made are in the furnishings side and bedding
But for some 'bizarre', faux altruistic reason that I have yet to figure out,
Gerry Harvey is sending his guys int this retail knife fight with one hand tied behind their backs.
The ruling from the franchisor to the supposed "independent" franchisees, is to stock 70% Australain made product
absolute lunacy.....!!!!! with no benefit to the share holders at all!!!
The Aussie made products are too expensive, the quality marginal compared to the better and cheaper product made overseas and with the opposition selling similar products from overeas at 2 thirds the price, the only way to compete is for the Harveys guys have to drop the prices!!!!
Thereby taking away their ability to make any money on the only product range with actual profit margin, the only bright spot of all the products sold across all the franchise groups.
Having the weight of the Irish albatross hanging around their neck and an attitude of being too proud to admit they made a mistake and get the hell out of their as soon as they can & with minimal loss to shareholders, we will see this below the $3.00 mark.
Once that psychological barrier is crossed, then no amount of manipulative cross trading and support will prop this SP up