Harvey Norman shares jump to record high of $7.69, Gerry Harvey proposes bold solution to retail crime

Retail giants Woolworths, Bunnings and Coles should just let floor staff punch shoplifters to help end the problem of store theft in Victoria, according to Gerry Harvey the founder of retailer Harvey Norman.

Mr Norman made the tongue in cheek comments at the company’s annual shareholding meeting in Sydney on Wednesday morning,

“It’s a bit strange that you can go into Bunnings and all the staff hide and you can take whatever you like,” the 86-year-old retail boss said.

“My best advice (to retail staff) is when they come in hit them (a shoplifter) as hard as you can, to give them a message, so they don’t come back... So I would be very sympathetic to someone punching someone.”

He later clarified the remarks were not intended to be taken literally, and were made to highlight the need for society to get tougher on crime.

Shares hit record high

The retailer’s shares jumped 4.1 per cent on Wednesday morning to $7.69 as investors welcomed its overseas expansion and strong sales growth in Australia.

At its annual shareholding meeting, the company revealed same-store sales in Australia grew 6.4 per cent over the period between July 1 and November 20.

Total sales for the entire group, which has 316 franchised and company-operated stores across Australia, New Zealand, Asia and Europe, rose 9.1 per cent with same-store sales growth of 8.1 per cent over the period.

Same-store sales removes the effect of new stores, allowing investors to compare the growth of existing outlets.

Broker Citi described the trading update as “strong” and said the Australian like-for-like sales were a little ahead of forecasts.

“The benefits of lower interest rates and household income growth could boost Harvey Norman’s sales,” Citi said as it stuck to a $7.70-a-share valuation on the business.

AI boosts sales

Chief executive Katie Page said artificial intelligence had been used to improve sales.

“Our 10 year flagship retail expansion has positioned Harvey Norman as Australia’s most successful omni-channel retailing export in home, lifestyle and tech - success that is measured in duration, sustained growth and total physical, international footprint,” she told shareholders at the meeting in Western Sydney.

Overseas sales benefited from a weaker dollar. The company is opening more stores in Britain and Malaysia.

The stock has surged 63 per cent this year, giving the company a valuation of $9.5 billion and adding to the wealth of billionaire co-founder Gerry Harvey.

More to come..