Harvey Norman slump in profits due to IT misspending?
According to AFR Harvey Norman blamed a slump in profits (19% down) on investments in e-commerce and IT systems. It looks like yet another Australian retailer "took IT seriously" and in the process seriously wounded the business. When will the large retailers learn that 'expensive' usually guarantees trouble rather than success? BTW: we got the above quote from a department store executive after they spent $500 million on IT. We will report back once we see any benefits.