Lifts performance of other stores.
Harvey Norman has reinforced the importance of its Flagship store strategy to its international sales performance as the Auburn Flagship store in Sydney as well as Zagreb in Croatia are set to be launched next month.
The company has confirmed the performance of the Flagship stores in each of the existing international markets has delivered strong financial returns and also lifted the perception and performance of other stores, leading to the business describing the Flagship store strategy as outperforming and exceeding expectations.
In a presentation outlining its results for the 12 months to June 2018, Harvey Norman has revealed that in September the company will complete the launch of one flagship store in each of its eight countries with Flagship stores launching at Auburn in Sydney as well as the Flagship store at Zagreb in Croatia.
“Each of the Flagship stores is designed to provide an unrivalled customer experience in terms of store design, customer service and premium product offering,” the company said in its presentation to analysts.
The company said the $62.71 million increase in sales revenue from the Singapore and Malaysia business has been driven by the success of the Flagship strategy.
Inside the Harvey Norman Auburn flagship
Sales from the Singapore business for the 12 months to 30 June increased by $48.74 million due to the ongoing performance of the Millenia Walk Flagship store alongside its new Viva City Factory Outlet opened last year and the expansion of its existing stores at Parkway Parade and North Point to incorporate full-concept stores.
In Malaysia, sales increased by $13.97 million following the re-format and re-launch of the Flagship store at Ikano in Kuala Lumpur late last year and the new Viva City Mega Mall at Kuching in Sarawak.
In Ireland, the increased in sales of $49.43 million following the launch of the Tallaght Flagship store in Dublin which opened last year and the positive flow-on effects to the existing store base from enhanced brand recognition.
In Northern Ireland, the sales increase of $0.13 million was attributed to ongoing strength of the Boucher Road Flagship store in South Belfast.
In Slovenia, sales increased by $20.99 million following the refurbishment of the Flagship store at BTC City Ljubljana last year which has created what the company has described as a ‘halo-effect’ for the other Slovenian stores which have reported growth rates in excess of 20 per cent.
In Croatia, the growth of $4.77 million will be boosted by the refurbished Zagreb Flagship store which will be launched in September.
In New Zealand, the launch of the Wairau Park Flagship store opened at the end of June 2018 and is expected to contribute strongly to revenue prior to Christmas 2018.