Retailer Harvey Norman which operates 14 stores in the Republic and a further two in the North, said today that Irish sales stabilised during the 12 month period ending June 30th 2011.

The furniture and electronics retailer, which incurred a €27 million loss across its Irish operations in 2010, said sales at its Republic of Ireland operation fell by 0.2 per cent in the 12 months to the end of June while sales in the North rose by 3.2 per cent.

Both Irish divisions grew sales for the second-half of the year compared to the same six months period in 2010 with the Republic of Ireland operation growing sales by 1.9 per cent in the third quarter and by 4.6 per cent in the final three months of the year.

"It was really a year of two halves for us, with sales flat before Christmas, and then some encouraging growth in the six months to June," said Blaine Callard, chief executive of the Irish Operation.

"Consumer sentiment continues to be very weak, and shows no signs of recovering soon. Big Ticket retail sales in furniture and electronics have been hit the hardest, so it's about getting a bigger slice of a smaller pie. We will continue to improve our operation, investing in our people, our service and our stores.

"The strategy for us is to focus on growing market share. Revenue growth in the second half is very positive for us against such a difficult economic backdrop," he added.

Established by Australian magnate Gerry Harvey in New South Wales, Havery Norman operates 320 stores worldwide and employs some 850 people in Ireland, Australia, New Zealand and Slovenia.

Mr Harvey was heavily criticised in November 2008 after calling the recession-hit Republic a "basket case", and likening the savage market slump here to the "return of the potato famine".

The Harvey Norman Group today reported worldwide sales of €4.45 billion for the 12 months ending June 30th. This marks a 1.7 per cent rise on the same period a year earlier.