Harvey Norman, has moved to crank up their UK presence with CEO Katie Page cutting a new deal for a store in the UK’s West Midlands with five possible stores on the agenda.
The decision to sign a new lease for The Gracechurch Shopping Centre in Sutton Coalfield follows the launch of Harvey Norman’s flagship store at Merry Hill Shopping Centre, Brierley Hill near Dudley,
Indications are that the big Australian retailer has won over local authorities who are are lookin to pump life back into West Midland shopping areas where unemployment is high.
Research reveals that in the UK’s West Midlands, 21.2% of people aged 16 to 64 years were unemployed or as they like to say in the UK “economically inactive”.
ChannelNews understands that this region will also be the location of Harvey Normans UK headquarters, with the Com,pany claiming that they are planning to open as many as five stores in the UK.
The move into this region comes as the West Midlands Combined Authority (WMCA) is trying to breathe new life into the 250,000 square ft Gracechurch shopping centre through a multimillion pound investment that includes new homes, leisure, retail, commercial and other uses.
At this stage it’s not known whether Gerry Harvey who owns billions of dollars worth of property assets is set to invest in commercial property assets in this region.
In their latest financials Harvey Norman reported a $12.56m increase in company operated sales mainly due to new store openings in Malaysia, NZ and the UK.
They also reported a $48.14m net increase in interest-bearing loans and borrowings, primarily due to higher utilisation of short-term borrowings to fund expansion in the UK.
There was also a $63.08m increase in payments to suppliers and employees, resulting from higher costs of opening new overseas stores including the new Merry Hill UK flagship store.
The Company claims that their first UK flagship Merry Hill store represents the first in a wave of planned investments across the UK’s West Midlands, in support of the business’ wider UK and global expansion drive.
Harvey Norman is also in advanced negotiations regarding a number of other investment opportunities across the West Midlands, expected to create a further 200 jobs, these investments have not been spelt out but include property invests where the local authorities have provided incentive investments.
The retailer admits that their investment drive is being supported by the West Midlands Growth Company (WMGC) – the region’s official investment promotion agency – which is helping the business to identify possible investment sites, in conjunction with local skills teams. WMGC has also facilitated valuable introductions in support of Harvey Norman’s recruitment drive and provided the business with specialist consultancy across a number of areas, including trading in the England marketplace for the first time.
ChannelNews understands that Harvey Norman is taking advantage of the UK-Australia Free Trade Agreement with the UK that was signed in May 2023,claiming it removes unnecessary barriers to the UK market for Australian businesses while and strengthening trade ties between the two countries.
At this stage it’s not known whether any of the Trump tariffs will impact Harvey Norman.
Katie Page, claims that “The West Midlands’ high grade retail space and exceptional connectivity are two key reasons why we’ve chosen Sutton Coldfield as the home of our new UK headquarters and to launch our next store here. Gracechurch will provide an excellent hub for our growing UK team and I look forward to returning to the region soon as we progress our expansion plans.”
Richard Parker, Mayor of the West Midlands, said: “Harvey Norman’s investment is a big win for Sutton Coldfield. It’s proof that our high streets can thrive again, creating jobs and giving people more reasons to visit, shop, and socialise. With new jobs and homes on the way, we’re delivering real opportunities and making this town a great place to live and work.”
HE the Hon Stephen Smith, High Commissioner of Australia to the UK, said: “The United Kingdom is Australia’s second largest investment destination, as well as our second largest source of investment. This major investment by Harvey Norman into the West Midlands is a great example of how investment is mutually beneficial and supports economic growth and jobs in both Australia and the UK. The Australia-UK Free Trade Agreement, which came into force on 31 May 2023, is providing new opportunities to expand trade and investment by lowering barriers to trade and encouraging new investment.”
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