Furniture, electronics and appliances retailer Harvey Norman is now selling refurbished stock, factory seconds and run-out models through four stores that have been rebranded as Harvey Norman 2nds World in New South Wales.
The move follows Harvey Norman’s purchase of 2nds World assets, including its IP, some stock and fixtures and fittings from two sites, after the discount chain fell into administration in April.
Harvey Norman renegotiated the leases on two 2nds World sites in Auburn and Castle Hill. It did not renegotiate the leases on the sites in Cremorne, Penrith and Caringbah, but opened a new 1000sqm Harvey Norman 2nds World store at a complex it owns in Penrith.
It also rebranded a Harvey Norman factory outlet in Mascot to Harvey Norman 2nds World, bringing the new brand’s total store count to four.
“At the Harvey Norman 2nds World sites, we’ll be selling damaged carton products, factory seconds, reworked and refurbished stock and of course run-out models,” Harvey Norman director David Ackery told Inside Retail.
This differs from the 2nds World business, which also sold some new boxed product, but Ackery said the Harvey Norman 2nds World stores will offer exactly what the name implies.
“We want to differentiate between the franchisees that sell new boxed product,” he said.
According to Ackery, the Harvey Norman 2nds World stores give the retailer access to another piece of the market that it wasn’t well represented in previously.
“We only had one [factory outlet] in Sydney and saw an opportunity there, and the proprietors who ended up buying the stock saw the opportunity and made the deal,” Ackery said.
Harvey Norman has other factory outlets in Perth, Adelaide, Hobart, Melbourne and the Gold Coast, but Ackery said the company isn’t planning to convert other factory outlets to Harvey Norman 2nds World stores, or to expand the new brand to other states.
“Who knows…I would think we’ll have a look at how these proprietors perform,” Ackery said.
The four Harvey Norman 2nds World stores are all owned by franchisees.