By James Wells
SYDNEY: Retail market analysts have suggested that the “blood in the water” experienced by Clive Peeters in Sydney may be blamed on “second tier locations” and stifling tactics by Harvey Norman.
Two analysts contacted by Current.com.au have suggested that it is Harvey Norman that is protecting its domestic market as well as the added pressure from incumbent retailer Bing Lee which is providing the Clive Peeters brand with difficulty in the Sydney market.
One analyst quoted a senior executive at Harvey Norman as saying that there was “no way that we are going to let these guys come under the cover of darkness into our home market”.
Another analyst said: “With Clive Peeters and Clive Anthonys moving in, it is clear that the competitive threat would be met by the incumbent brands in the greater Sydney market”.
Analysts described the Clive Peeters result yesterday as “a huge amount of blood in the water after choosing second tier locations in Sydney”, while another said: “for Clive Peeters to come out with a flat profit outcome is a tragedy and apparently heads have rolled”.