Electronic retail specialist Harvey Norman is following the lead of its rival Myer as the company announced on Monday it would establish an online store that would process and ship goods from China to Australia.

Harvey Norman head Gerry Harvey said that the company may even pre-empt the planned February launch of Myer's online store, which he added would at least contribute some amount of revenue for the retail firm.

Both Harvey Norman and Myer are scrambling to join online trading to take advantage of the emerging Australian consumer practice of snatching bargain products from global providers.

The trend, according to local retailers, is one of the factors in the declining revenues of the retail industry as more and more Australians scrimp on their shopping budgets and gravitate towards the thrifty offerings of online traders.

The new ploy by Australian retailers would also allow them to technically dodge GST, which only applies on goods imported for more than $1000, and start at the same time competition to international traders deem to be poaching on traditional clients of local retail players.

Harvey Norman's online store would mainly offer products that can be sold for less than $1000 so as not to attract GST obligations such as apparels, accessories and cosmetics and more goods would be added as the website slowly establishes its presence among online shoppers in Australia.

Local retailers have been complaining of the slow movements of their merchandises despite the onset of the peak Christmas shopping and industry leaders are putting the blame on stiff competition posed by international online retail sites and the negative impact of the high Australian dollar to many sectors of the economy.

Analysts said that one of the hardest-hit of the soaring local currency is the retail sector, which they said is struggling to compete with international traders, who are riding on the crest of their currencies' lower value, considered a boon for most exporters.

Online trading also provides a viable option for the local retail industry due to its relatively lower operational cost and a number of major players appear attracted by the prospect with earlier indications emanating not only from Harvey Norman and Myer but also from luxury retailer David Jones.