THE NEWS WRAP: Gerry Harvey admits new website will be competing with his franchised outlets

Harvey Norman chairman Gerry Harvey has admitted that he will be competing with his franchised outlets with the brand’s new Big Buys website.

Harvey Norman recently launched the site in a bid to stem the flow of sales to online retailers. Harvey said that he plans for the site to turn over $100 million within two years and $1 billion within five to 10 years, potentially cannibalising existing sales.

However, he said he hoped that the site wouldn’t compete with bricks and mortar franchisees in five years’ time. 

Banking inquiry set to rule out regulation

A senate inquiry into banking competition will advise the Government to resist calls for tighter regulation on the big banks, according to Fairfax’s Business Day.

The inquiry’s report, due to be released next week, will reportedly contain proposals to accelerate tax breaks for foreign banks to provide greater competition to the ‘big four’. However, the report is set to urge the Government not to introduce measures to stop banks rising mortgage rates above the official RBA mark. 

Facebook launches Deals

Facebook has officially launched its Deals service, in a direct challenge to the market dominance of Groupon in the US.

Deals, an online coupon offering, is currently only available in San Diego, San Francisco, Atlanta, Austin and Dallas, but Facebook plans to roll it out internationally.

The group buying marketing in Australia has become saturated with providers in the past 12 months, with more than 20 sites offering online coupons.

Overnight

The Australian dollar hit a new high following the five-day Easter and Anzac Day weekend, reaching 107.89 US cents. US markets were also buoyant, with the Dow Jones rising 115.57 points to 12,595.45.