ALL OF Harvey Norman’s stores in Ireland are losing money, with sales plunging by as much as 40 per cent, the Australian electronics and furniture retailer said yesterday.

The company said it would “persist” with its 14 Irish stores and attempt to turn around the business, despite a 20-40 per cent dip in sales in 2008.

“I’ve been in business since 1961 and I’ve never seen this sort of sales decline,” executive chairman Gerry Harvey said.

However, despite the fact that no upturn is in sight, Mr Harvey, who owns 30 per cent of the company, said it had no plans to close its operations in Ireland.

The slump in Harvey Norman’s sales is more or less in line with the fortunes of the electronics and furniture markets in Ireland, which have been badly hit by the collapse of the housing market, lower disposable incomes and faltering consumer confidence.

The latest figures from the Central Statistics Office (CSO) show that sales of electrical goods have dropped 10 per cent in terms of volume over the year to May.

The value of sales has fallen 21 per cent over the same period, suggesting that retailers have been forced to offer large discounts in order to shift their stock.

Sales volumes of furniture and lighting have collapsed 31 per cent over the period, with the value of these sales down 46 per cent.

Yesterday’s group trading update from Harvey Norman missed analysts’ expectations and sent its share price plummeting on the Australian Stock Exchange.

Revenue from existing stores rose 2 per cent in the three months to the end of June, as the Australian economy narrowly avoided entering into recession.

Harvey Norman’s four outlets in the Dublin area face new competition from iconic Swedish furniture retailer Ikea, which opens in Ballymun on Monday. – (Additional reporting: Bloomberg.)