Harvey Norman in Asia - Brief Article

Business Asia, Oct 25, 1999

Harvey Norman's Australian business will likely be eventually dwarfed by its business in Asia if the company's ambitious expansion plans for the region take hold, joint founder Gerry Harvey says.

Harvey's comments followed the announcement this month of a move by the furniture and computer retailer into the Singapore market, through an agreement to take a major stake in Singapore retailer Pertama.

The deal involves Harvey Norman forming a joint venture with Singapore-based company Ossia.

It will then take a majority stake in Pertama through a put and call option agreement.

Harvey said he intends to use the Singapore business as a base from which to expand throughout Asia.

The initial focus will be on developing further stores in Singapore under the Pertama name, in addition to the six existing Pertama stores, which currently have sales of S$50-60 million.

It will then look to expand to Malaysia and Thailand, and later to other Asian countries he said.