“Let’s just look at the worst-case scenario when suddenly this Delta turns into something else, and the vaccines don’t work, and then the whole of Australia is closed. What happens then?”

Last year, Harvey Norman paid shareholders a 6 cent special dividend after cancelling its interim dividend earlier in the year. Mr Harvey said something similar could be on the cards for investors if things improve better than expected.

Harvey Norman has been a major beneficiary of the pandemic due to its range of office products, household goods and consumer electronics, all of which have been popular purchases for shoppers during lockdowns.

Sales through the start of the new financial year have fallen due to lockdowns, with trade down 19.2 per cent in Australia through July and August, however, sales are up 11 per cent when compared to 2019.

Mr Harvey said he was still expecting a huge rebound in trade once states reopen post-lockdown, saying that’s what had happened in every location around the world where the company operates.

However, the veteran retailer warned of letting the lockdowns drag on for too long, raising concerns over their impact on the local economy.

“If it keeps going too long, then how much damage do you do to the economy? If that happens and unemployment and the whole thing starts to spike...that’s the biggest danger,” he said.

“The longer you put this off, the more chance you’ve got of getting into some sort of recession.”

Shares in the retailer were down 3 per cent to $5.39 by midday. Federal Labor MP Andrew Leigh, who has been one of the company’s fiercest critics, said Harvey Norman’s repayment of JobKeeper should lead to more transparency around JobKeeper.

“Six months ago, Gerry Harvey flatly refused to repay. Does anyone imagine he would’ve repaid without huge public pressure?” he said.

“Harvey Norman has given us the best advertisement for more transparency into the secretive, rorted JobKeeper scheme.”

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