Harvey calls for slashing of red tape
Mr Harvey said he was at a loss to explain why higher consumer confidence following the election had not translated into improving sales, arguing real estate agents were doing well but discretionary retailers were missing out.
"Consumer confidence is higher," said Mr Harvey on Monday as his furniture, electronics and appliances group released like-for-like first quarter sales had risen 4.3 per cent, "but it hasn't translated into better business".
"Now that wouldn't be right if you spoke to real estate agents ... at the moment. Whether that's the election or low interest rates I don't know.
"[But as far as] retailers are concerned out there I haven't heard anyone say the election victory has resulted in increased business."
The comments gel with those of other retailers who have also failed to detect a sustained lift in spending. Wesfarmers boss Richard Goyder, whose retail businesses span Coles, Bunnings, Target and Kmart, and Woolworths CEO Grant O'Brien have both said they were yet to see rising consumer spending at their stores.
Harvey Norman's flagship Australian store base was showing some signs of improvement with September quarter sales up 1.2 per cent - the retailer's third consecutive quarter of sales growth for its local operation. Comparable sales were stronger, up 2.9 per cent.
Mr Harvey said red tape was harming growth and reining in business expansion plans. He remained cynical that the new government would remove enough red tape to make a difference.
"The government has come in said they are going to do something to get rid of red tape, and my bet is they will do a little but no where near what's got to be done, not a within a bull's roar."
Last month Coles boss Ian McLeod called on the Productivity Commission to investigate the cost of red tape to the economy, saying it was constraining business.
Frequently Asked Questions about this Article…
Gerry Harvey, the executive chairman and co-founder of Harvey Norman, believes that the federal government should eliminate the '100 foot high' tower of red tape that is constricting business growth. He argues that this red tape is harming growth and reining in business expansion plans.
Gerry Harvey, the executive chairman and co-founder of Harvey Norman, believes that the '100 foot high' tower of red tape is constricting business growth. He argues that eliminating excessive regulations could help businesses expand and improve sales, especially as consumer confidence has not yet translated into increased spending.
Despite higher consumer confidence following the election, Gerry Harvey notes that it hasn't translated into improved sales for discretionary retailers. He points out that while real estate agents are doing well, retailers are not seeing the same increase in business.
Despite higher consumer confidence following the election, Gerry Harvey notes that it hasn't translated into better business for discretionary retailers. While real estate agents are doing well, retailers like Harvey Norman are not seeing a significant increase in consumer spending.
Harvey Norman's flagship Australian store base has shown signs of improvement, with September quarter sales up 1.2%. This marks the retailer's third consecutive quarter of sales growth for its local operation, with comparable sales up 2.9%.
Harvey Norman's flagship Australian store base has shown signs of improvement, with September quarter sales up 1.2%. This marks the retailer's third consecutive quarter of sales growth for its local operations, with comparable sales up 2.9%.
Other retailers, including Wesfarmers and Woolworths, have echoed Gerry Harvey's sentiments, indicating that they have not yet seen a sustained lift in consumer spending at their stores.
Other retailers, including Wesfarmers and Woolworths, have also reported not seeing a sustained lift in consumer spending. Executives from these companies have echoed Gerry Harvey's sentiments about the lack of increased business despite higher consumer confidence.
Gerry Harvey remains cynical about the new government's ability to remove enough red tape to make a significant difference. He believes that while the government may do a little, it won't be enough to address the issue comprehensively.
Gerry Harvey remains skeptical about the new government's ability to significantly reduce red tape. He believes that while the government may make some efforts, it will not be enough to make a substantial difference in business growth.
Ian McLeod, the boss of Coles, called on the Productivity Commission to investigate the cost of red tape to the economy, stating that it was constraining business.
Last month, Coles boss Ian McLeod called on the Productivity Commission to investigate the cost of red tape to the economy, highlighting its role in constraining business operations.
Gerry Harvey suggests that factors such as the election or low interest rates might be benefiting real estate agents more than retailers, as he hasn't heard of any increased business for retailers following the election victory.
According to Gerry Harvey, red tape is harming growth and reining in business expansion plans. Excessive regulations make it challenging for businesses to expand and capitalize on potential market opportunities.
The article suggests that red tape is a significant barrier to business growth and expansion, as it constrains businesses from fully capitalizing on opportunities and improving sales, according to Gerry Harvey and other industry leaders.
While discretionary retailers are facing challenges, the real estate sector appears to be performing well. Gerry Harvey notes that real estate agents are experiencing better business, possibly due to factors like the election or low interest rates.
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