Harvey Norman to close some stores due to economic downturn

Retailer Gerry Harvey is warning some of the stores in his Harvey Norman empire will close during the next six months because of the economic slowdown.

Sales in all key areas of the business – furniture, electrical and computers – had slumped 3 to 4% in recent months, he said.

The retailer’s pre-tax profit fell by 32% in the three months to September.

“We’re looking at closing not a lot of stores, but some stores between January and June (2009),” Mr Harvey told ABC Radio.

Every retailer in Australia was under stress at the moment.

“I don’t think there’s one strong person left,” he said of his competitors.

article excerpts SMH