Harvey Norman snaps up Megamart

Harvey Norman is to expand its national network with the purchase of six Megamart locations from current owner, Coles Myer.

For a sum of $56 million the IT mass merchant chain is to take on the premises and other assets of six of the electrical and furniture retailer’s stores.

The move will see Harvey’s expand across the East Coast with Chadstone, Fountain Gate, Thomastown and Sunshine in Victoria, Coorparoo in Queensland and Alexandria in NSW.

The purchase is expected to be completed by the 23 November whereupon all the purchased Megamart stores will begin trading as Harvey Norman outlets.

Megamart’s remaining three outlets -– Auburn and Casuala in Sydney, and Perth City in Perth -– will be closed on the 13 November.

In a statement to the ASX, Coles Myer CEO John Fletcher said the majority of Megamart staff at the six stores were likely to continue on under Harvey Norman or other Coles Myer businesses.

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