Harvey Norman looks to online sales channel

Harvey Norman (ASX:HVN) plans to lean on a new e-commerce site, launching early next month, to help generate sales in FY12.

In a report to shareholders, Chairman Gerry Harvey said that the company would operate the site using the using experience gleaned from its existing photo-finishing and Domayne sites.

Based on this experience, “we are confident our on-line transactional strategy will produce incremental dollars to the existing channel,” he said.

Harvey also stated that that the launch of the site will be the most significant addition to the Harvey Norman business in 1H12.

The company also plans to introduce a multi-channel “software on demand” offering based on its photo-finishing business in the near future.

Harvey gave an upbeat assessment for the group's performance in FY12, stating that "in the midst of challenging macroeconomic conditions, the outlook for the integrated retail, franchise and property system of the company remains positive".

But he noted that the Australian retail segment is still grappling with price deflation in the computer and electrical categories.

In FY11, Harvey Norman's net profit grew nine per cent to $252.3 million. But pre-tax earnings from franchising operations fell 18.1 per cent to $254.6 million

HVN shares grew 0.47 per cent on Thursday to $2.150.

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