By Patrick Avenell
SYDNEY, NSW: A franchised Harvey Norman store in Australia brought in, on average, just under $27 million in revenue during the 2010 Financial Year. This figure is considerably higher than the $19.2 million per store revenue for Harvey Norman's company-owned stores in New Zealand, Ireland, Slovenia and South East Asia, and OFIS stores in Australia.
According to the Group's Annual Report to Shareholders released yesterday, the total sales revenue for franchised Harvey Norman stores in Australia was $5.19 billion from 194 stores during FY10, whilst the company-owned stores, numbering 70, brought in $1.344 billion. Averaged out, this equates to $26.75 million per franchise compared to $19.21 million for company-owned stores.
These figures do not take into account the size or location of these stores, nor does it factor in whether the outlet operated for the entire 12 months of the financial year.
"The franchising operations segment continued to be the main driver of performance, delivering an underlying result before tax of $314.17 million for the year ended 30 June 2010, compared with an underlying result of $308.06 million for the prior year; an increase of 2 per cent," said chairman Gerry Harvey. "Franchisees continue to gain market share in all key categories."