‘More money out there than we think’: Harvey Norman chair Gerry Harvey on EOFY sales splurge

Harvey Norman chair Gerry Harvey reckons shoppers have cast aside the cost of living crunch to snap up bargains during the end of financial year sales, saying “there’s more money out there than we think”.

Australians are tipped to spend a whopping $10.5 billion during EOFY sales in June, despite the mid-year clearance discount season not often attracting the same level of hype as the Black Friday or Boxing Day promotional events later this year.

Most retailers run their sales from early June to the end of the month, with some continuing through early July.

For Mr Harvey, EOFY sales at his furniture, electronics and white goods business — which has hundreds of stores across Australia, Europe and Asia — had been “much stronger than I would have anticipated”.

“There’s a million more people in Australia now than there was two or three years ago and I think that there’s more money out there circulating than we think,” Mr Harvey told The West Australian on Monday.

“There’s been an awful lot of publicity on how tough things are but you’ve still got unemployment at a very low level.

“If you go to a restaurant at the moment, it’s not uncommon to see them very full and you and I can go in there with two friends and we walk out spending $400 or $500 at least.”

The Reserve Bank of Australia in May delivered the second rate cut this year in some much-needed financial relief for millions of cash-strapped mortgage holders. Some analysts are expecting three more cuts this year.

“People are a little more confident than they would have been had there not been those two interest rate drops,” Mr Harvey said, adding his artificial intelligence-led computers and devices have been popular during the EOFY sales. Robot vacuums are also in demand.

Chloe Lennon was out shopping with friends Eolise Sheldrick and Issy Renough on their first day of school holidays.

Cotton On, Universal Store, General Pants Co and Sephora were among the shops the 15-year-olds hit up on Monday.

“I’m going away to Italy soon so I needed to buy some t-shirts,” Ms Lennon said, adding there were “lots of sales”.

“It wasn’t too busy because I think people are still at school.”

Karrinyup centre general manager Trudy Cook said it continued to receive strong demand for EOFY sales, with an increase in foot traffic at the centre compared with last year.

“Our shoppers are taking advantage of the major discounts on offer during our EOFY sales period to purchase premium items at significantly reduced prices,” she said.

“Our best-selling products during this year’s sale include luggage, household appliances, tech and gaming consoles and home furnishings.”