As the share price of Harvey Norman plunged 6 per cent in lock step today with the slide of its latest profit and sales, it is now becoming apparent that a new strategy is required to stop the rot.

Founder Gerry Harvey has blamed the company's meagre first-half profit result and dramatic fall in second-quarter Australian sales - indeed overall comparable store sales - on a host of factors. These include the strong dollar, weakening consumer sentiment, the rising power of the internet and the closure of seven Clive Peeters stores.

Gerry Harvey can't relax. Credit:Ben Rushton

But shareholders are losing patience with a company whose share price has been on a downward spiral for a number of years.

Its plunging share price has got to a stage where its market capitalisation of $2 billion is $400 million higher than its investment property portfolio, which implies the rest of the business is worth barely $400 million, which is ridiculous.