TWG buys GOOD guys stock and store leases.

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Forums › Finance and wealth management › TWG buys GOOD guys stock and store leases.

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Kyanar

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#1081786 6-Jul-2014 11:32

Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

MikeB4

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#1081851 6-Jul-2014 15:05

Kyanar:
Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

A couple of weeks back I was purchasing a coffee machine at HN Hut Valley, the Home Appliance Checkout had a long queue but the computer check out was clear, I thought why not so I went to the computer check out and was told they could not do it as they are separate businesses, but what would they know.

richms

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#1081852 6-Jul-2014 15:08

KiwiNZ:
Kyanar:
Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

A couple of weeks back I was purchasing a coffee machine at HN Hut Valley, the Home Appliance Checkout had a long queue but the computer check out was clear, I thought why not so I went to the computer check out and was told they could not do it as they are separate businesses, but what would they know.

They used to do that carry on at the wairau store, but last time I had no problem taking some gaming stuff thru the appliance side checkout.

They also had some horrid POS system that involved a lot of work for the person typing things and printing things and then eftpossing things and then stapling things. Was quite an ordeal.

Richard rich.ms

Kyanar

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#1081861 6-Jul-2014 15:13

KiwiNZ:
Kyanar:
Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

A couple of weeks back I was purchasing a coffee machine at HN Hut Valley, the Home Appliance Checkout had a long queue but the computer check out was clear, I thought why not so I went to the computer check out and was told they could not do it as they are separate businesses, but what would they know.

What's your point? An employee at a counter said something, so you believe it must be true despite the documents produced by the company that it's a criminal offense to print false information in saying the opposite? No, it's not a franchise, because it's in New Zealand. Simple.

Regardless, we've gone pretty far off topic - this is meant to be about The Warehouse buying Good Guys, and how there's no competition left in the market any more :/

(Side note, like richms said, most HN stores don't try and pull that muck any more - Henderson used to do that and doesn't now. I think it was due more to some sort of limitation in their archaic POS and inventory management system)

MikeB4

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#1081864 6-Jul-2014 15:15

Kyanar:
KiwiNZ:
Kyanar:
Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

A couple of weeks back I was purchasing a coffee machine at HN Hut Valley, the Home Appliance Checkout had a long queue but the computer check out was clear, I thought why not so I went to the computer check out and was told they could not do it as they are separate businesses, but what would they know.

What's your point? An employee at a counter said something, so you believe it must be true despite the documents produced by the company that it's a criminal offense to print false information in saying the opposite? No, it's not a franchise, because it's in New Zealand. Simple.

Regardless, we've gone pretty far off topic - this is meant to be about The Warehouse buying Good Guys, and how there's no competition left in the market any more :/

Actually it was the Manager but I guess you know more.

I am out I am not that interested in ego stroking tat ta

Kyanar

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#1081866 6-Jul-2014 15:20

KiwiNZ:
Actually it was the Manager but I guess you know more.

I am out I am not that interested in ego stroking tat ta

No, I don't know more. However, I actually researched this prior to making the statement. I provided a link to the evidence of my statement, and nigelj helpfully provided the exact page number and direct quote reinforcing that statement (thanks Nigel). I don't know what this muck is about "ego stroking" but it sounds an awful lot like an ad hominem attack, which seems to be a bit of par for the course from you lately.

nigelj

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#1081869 6-Jul-2014 15:30

KiwiNZ:
Kyanar:
Dunnersfella: Well I've met franchise holders from NZ Harvey Norman stores as recently as last week... I wouldn't trust every link on the interweb.

Every link? It's the actual company's annual reports. It's pretty clear, there are no Harvey Norman franchises outside Australia. I trust the company's legally binding, audited, communications more than some random people you met.

A couple of weeks back I was purchasing a coffee machine at HN Hut Valley, the Home Appliance Checkout had a long queue but the computer check out was clear, I thought why not so I went to the computer check out and was told they could not do it as they are separate businesses, but what would they know.

The Home Appliance & Computers/AV politicking is carried over from the Australia franchise reasoning, but not because we have franchises, I've actually just checked. It seems that while Harvey Norman owns all aspects of the stores they still setup each aspect of the business as an individual business (this seems like a real WTF if you ask me).

I've come to this conclusion from simply playing the game of comparing receipts of NZ & Australian HN purchases...

Australian purchases all have near the top:

<Incorporated PTY LTD name> A.C.N XXX YYY ZZZ A.B.N. MM NNN OOO PPP QQQ
as Trustee of the <Trust Name>
trading as
Harvey Norman <Department Name> <Store Location>

Whereas, NZ receipts just have:

Harvey Norman <Department Name>

& display a common GST number from what I can see (regardless of location).

New style receipts in NZ have:

Harvey Norman Stores (NZ) Pty Ltd
Harvey Norman <Dept Name>

In other words, they appear to have setup each department at arms length to each other in an Australia like way, in the event that they COULD franchise the NZ operation in an extremely low cost manner (far lower cost than any other operation I've heard of) if the need ever arose. IT department sales system, literally can't talk to Kitchenware because that is how they designed it, even though both are owned and report under the same GST number.

Quic Broadband

Move to New Zealand's best fibre broadband service (affiliate link). Free setup code: R587125ERQ6VE. Note that to use Quic Broadband you must be comfortable with configuring your own router.

Stu

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#1081887 6-Jul-2014 16:41

Actually after a quick search (took me to their careers site) it appears that the NZ stores have a Proprietor running each department. So each store is run as four individual businesses, and a proprietor is the head of each business.

Kyanar

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#1081898 6-Jul-2014 16:57

BigHammer: Actually after a quick search (took me to their careers site) it appears that the NZ stores have a Proprietor running each department. So each store is run as four individual businesses, and a proprietor is the head of each business.

Falls in line with what Nigel has discovered. It seems like a very bizarre arrangement, though if they were structuring it so that they could franchise out in future it would make sense. It also means by the sounds of it (had a quick read of their careers site) that they give an incredible amount of autonomy to the "proprietors" to run their stores the way they want. An interesting model, and definitely far and away different from the Warehouse model.

nigelj

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#1081956 6-Jul-2014 18:20

Kyanar:
BigHammer: Actually after a quick search (took me to their careers site) it appears that the NZ stores have a Proprietor running each department. So each store is run as four individual businesses, and a proprietor is the head of each business.

Falls in line with what Nigel has discovered. It seems like a very bizarre arrangement, though if they were structuring it so that they could franchise out in future it would make sense. It also means by the sounds of it (had a quick read of their careers site) that they give an incredible amount of autonomy to the "proprietors" to run their stores the way they want. An interesting model, and definitely far and away different from the Warehouse model.

Yeah, so the key thing is that it's "run as 2-4 businesses" but at the end of the days everyone at the store all work for HN NZ, credit where credit is due, from an accounting/etc perspective it must make things easier if they want to look at certain aspects of the business. Additionally from an admin perspective, if the 'proprietor' turns into a tool, much easier to replace under employment law (hopefully) than mess around under Franchise contracts to evict and replace half the shop (hopefully). It does explain why everyone thinks that HN NZ is under the franchise model though.

(Must say, it also gives me some new found respect for HN too)

oxnsox

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#1081959 6-Jul-2014 18:38

BigHammer: Actually after a quick search (took me to their careers site) it appears that the NZ stores have a Proprietor running each department. So each store is run as four individual businesses, and a proprietor is the head of each business.

This is not an uncommon practice within some companies.
Departments are often set up as independant profit centres ( even down to individual departmental accounting support). Allows the parent co. to better identify profit/loss areas and adjust business structures to better accommodate these. Also allows better/easier identification of profit focussed managers

Dunnersfella

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#1082042 6-Jul-2014 20:07

So Harvey's have an intricate way of structuring their business, and The Good Guys are gone burger.
And all the while, the domestication of the household dog continues, unabated.

Inphinity

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#1082043 6-Jul-2014 20:10

Can't say I'm surprised, rarely were their prices competitive for anything I looked to purchase, and rarely were their staff anything less than smug uptight pricks.

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