Ruslan Kogan, founder of online retailer Kogan.com.au, has publicly criticized retail heavyweight Gerry Harvey, suggesting that Harvey's assertions about a broad retail slowdown are misplaced. Kogan argues that consumers are not reducing spending but are instead becoming more discerning and value-oriented in their purchasing habits.
Harvey, who co-owns Harvey Norman with his wife Katie Page, recently commented on what he described as tough retail conditions and declining foot traffic across Australia. He suggested that only specific sectors like pharmacies selling weight-loss drugs and pet shops were unaffected, while others, including electronics and furniture retailers, have seen a worsening trend over the past six months.
Harvey Norman reported a 2% increase in net profit to $528.46 million and a 3.1% rise in total system sales to $9.64 billion for the year, although sales growth reportedly slowed in the latter half. In contrast, Kogan.com.au announced an $11.2 million net profit alongside a 12% jump in gross sales to a record $1.042 billion.
Kogan seized upon his company's performance, stating that Kogan.com.au delivered strong double-digit year-on-year growth. "Gerry's narrative just doesn't stack up," Kogan said. He acknowledged that the current economic climate is challenging for many families due to the rising cost of living but insisted that people still require essential items.
"What's actually changed is how customers shop," Kogan explained. "They're not just walking into a showroom and paying sticker price anymore. They're getting on their phones. They're comparing prices. They're being smarter about their purchases."
Kogan characterized Australian shoppers as "smart, savvy shoppers" and stated that his online business thrives in an environment where consumers conduct thorough research. "Legacy retailers are quick to blame the economy when sales slow down, but that misses the entire point. Aussies haven't stopped shopping - they've just stopped overpaying," he asserted.
Kogan encouraged consumers to "do your research, look at alternative products, read reviews, make comparisons" to ensure they secure the best value. He believes that this consumer behavior benefits businesses like Kogan.com.au, which he states grows its market share when customers are diligent in their shopping process. He added that his business loves this dynamic and benefits from customers who compare products and specifications. 
