EXCLUSIVE: Leaked Email Reveals Major Changes At Harvey Norman

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EXCLUSIVE: A leaked email has revealed that Harvey Norman is facing a massive restructure with more than 20 franchisee’s set to be shifted into new roles, some have chosen to resign. It’s also been revealed that the Company has over ordered stock and is now forcing suppliers to take back supply with many tipping an online “bonanza” of “cheap gadgets”.

The franchise move has prompted several franchisees and supplier partners to contact ChannelNews to vent their frustrations about the mass retailer which is struggling to come to grips with falling sales and lost profits.

In other moves IT and consumer electronics suppliers were last week being shown a new concept store at the Companies Alexandra NSW location which appears to have been initiated following the opening of the JB Hi concept store at the new Westfield in Pitt Street Sydney.

The leaked email from David Ackery Executive Director and General Manager Electrical at Harvey Norman was sent to all franchisees announcing the changes. CC’d on the email is Gerry Harvey and Katie Page along with several other senior Harvey Norman executives.

What Ackery has outlined is one of the biggest shakeups in the Company’s history with several franchisees claiming that they had no choice but to go along with the changes.

 In Victoria the new franchisees are as follows:
Joe D ‘Angelo, takes over Ringwood, Rick Gostich, Maribyrnong, Saff Redzeposki, Moorabbin and Ajay Calpakam, Frankston.

In the Joyce Mayne stores Stephen Lightfoot is moving to Albury and Rob Quick (Ex FIT Albury) to Toukley.

Grant Webster has resigned as franchisee due to personal reasons.  He will be taking up a role within the cooking area in a franchisee in Victoria.

In NSW the changes are as follows, Charbel Younis takes over Bondi Junction, Peter Shamoon, Liverpool, Dion Erihe (Ex FIT (Bondid has been moved to Mt Druitt, Damien Muratore Blacktown, Gavin Budd, Alexandria, Adrian Conti HN @ DM Alexandria (61 & 70), Vinnie Kumar HN @ DM Alexandria (60 & 62), Okan Genel, Campbelltown, Ben Kelada, Auburn, Daniel Woodhams, HN @ DM Auburn, and Luke Walsh, Norwest.

More over page.

 

In WA Bret Davies has been moved to City West while Jason Sawkins has been appointed as the General Manager Electrical Ireland. 

In QLD Adam Allison takes over Browns Plains, James Blum, Hervey Bay, Cara Pelerman, Toowoomba, Rob Purcell Oxley, Wayne Bradbury, Cannonvale and Peter MacInnes, Capalaba.

Murray Linn has resigned as a franchisee and will be taking up a role with Beko Appliances.

One franchisee who contacted ChannelNews said “The atmosphere inside the Company is bad, we are struggling to get sales and there is a lot of concern about the Harvey Norman brand. There are days when stores are empty”.

“Stock that has not sold over the Xmas New Year period is now being shipped back to suppliers who are not happy. The feedback we get is that a lot of suppliers are not happy with the way in which Harvey Norman has dumped stock backinto the supply chain, this stock will most probably end up on auction sites or online which will impact stores as the stock will be significantly cheaper than what we were selling it for” the franchisee said.

They added “Our relationship with some suppliers is not good, many are fed up with the steering committees and I believe the process has to change to a new model”.


A major supplier to Harvey Norman said “Doing business with Harvey Norman is difficult. You walk into one of their steering committee and often they cannot make up their minds with several franchisees squabbling over whether a product is good or bad.”

“We have had two situations where Harvey Norman has demanded a product exclusively and when they have failed to sell the stock they ordered they have demanded that we take it back and wear the losses. It is not a good way to do business”.

David Ackery was not available to comment on this story according to staff in his office.

ChannelNews is also in possesion of other Harvey Norman emails relating to profit margins and rebates.

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