By Patrick Avenell

SYDNEY, NSW: Gerry Harvey has revealed that the Harvey Norman online sales initiative will mirror The Good Guys’ venture, with centralised online sales then processed through the nearest geographical franchisee.

The major difference between the two business models is that whereas Good Guys’ customers pick up their purchases in store, Harvey Norman franchisees will be delivering the goods to the customers.

“All the paperwork and business will be done through head office,” Harvey told the Australian Financial Review.

“The local store just gets told to deliver it and contact the customer when it’s doing so. At the moment we’re just trying to figure out how much to charge the stores for head office to break even.”

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Speaking to the Australian Financial Review, Harvey said that whilst Harvey Norman’s online site should not cannibalise franchisees in the short term, he can offer no long term guarantees.

“I can say I won’t [compete with franchisees online] in the next year or two,” Harvey told the AFR. “But five years is too long a time to guarantee it.”

Click here to read about Harvey Norman’s sales announcement last week.

Click here to read about how price erosion is affecting Harvey Norman's sales.