By Aimee Chanthadavong
Myer chief executive Bernie Brookes shocked the market last week when he said the company has plans to take its website offshore to China to allow customers to shop GST-free.
Following those comments, there have been reports that Harvey Norman chairman Gerry Harvey will also be looking to build an offshore e-commerce website to avoid customers paying GST on purchases.
However, Ruslan Kogan from Kogan Technologies is calling out Gerry Harvey on his bluff.
"Harvey Norman will never open an online store selling direct from China. This is an absolute hoax. It's nothing more than Gerry and Bernie trying to force the Government's hand to change the GST laws,” he said in a statement.
"Last week, Gerry Harvey was saying that Harvey Norman had no intention of embracing the Internet. This week he's announcing a new online store based in China. Harvey Norman shareholders must be very tolerant people.
"I'm personally challenging Gerry Harvey and Bernie Brookes to actually open their China-based websites. I think there is about as much chance of this happening as Australia winning The Ashes.”
Confident that the two retailers will not follow-through with their plans, Kogan said if they do he will be placing prominent links on kogan.com.au directly to Harvey Norman's and Myer's China-based online stores.
Retailbiz contacted Gerry Harvey but would he not comment on the topic.