Harvey Norman CEO expects a “mini boom” in the northern state of Queensland as it struggles to pick itself up and dry off after the floods that has engulfed it in recent weeks.
Although several of its stores suffered severe water damage, it is not yet clear how much it will impact on profitability this year, he said yesterday.
However, every cloud, however dark, has a silver lining and this is no exception for retailers.
Electronics stores expect a huge surge in business following the disaster.
“With people needing things and the amount of money that’s going up there from everything, all the people who put in money to help, state and federal money, insurance money, you would expect Queensland to be up,” he told the Australian Financial Review.
The Insurance Council of Australia also agrees claiming retailers and distributors will benefit from the huge hike in consumers durables including TV’s home entertainment and PC systems and other home appliances.
At least two of Harvey Normans Qld stores have been damaged by the floods, one of which is among its most profitable in their network.
Last week the Insurance Council said they anticipate around 4300 claims for around $150 million.
All the major electronics suppliers including Dick Smith, Harvey Norman who also trades in Queensland as Clive Peeters, JB Hi Fi as well as WoW Sight and Sound have all been hit by the floods.
The total damage bill for the floods is expected to run into several billion.