Masters to close

[Evanism]

News this morning...Woolworths to pull plug on Masters after Lowe's exercises put option (http://www.smh.com.au/business/retail/woolworths-to-pull-plug-on-masters-after-lowes-exercises-put-option-20160117-gm7ygg.html)

It's game over. An orderly sale... Which means the work is already done in the background and the plug will be pulled any day.

Edit - ASX notice - http://www.asx.com.au/asxpdf/20160118/pdf/434fcyy3vzjc3l.pdf

[david.elliott]

Shame that, they kinda gave it a good shot. Early days when the staff were mostly retired or moved on tradies was the best time.
Most concerningly is the fact that Bunnings, here in the west at least, now pretty much have the game all to themselves. I have noticed an improvement in service at Bunnings since the arrival of a serious competitor. I hope that is maintained...I really try NOT to go to Bunnings whenever I can, but it's about all we have left...

[crowie]

Master's have just had an official opening of a very large store which has taken a couple of years to organize & build on a main road in Penrith...
The store is well stocked, good staff and very clean.....
I hope the brand stays and gives the big green sheds a proper run for there money!!!

[cava]

Sad perhaps, but really not surprised.

[Christos]

That's pretty heavy when you look at it. I kind of hope that it continues in some form.

[Kuffy]

home depot or walmart or similar may buy it. Probably a good buy given the motivated seller :)

[Tritonitis]

I have $100 worth of Woolies vouchers. Not sure if to wait for bargains or use them before they're no good.

[Chesand]

I have $100 worth of Woolies vouchers. Not sure if to wait for bargains or use them before they're no good.

I heard on the radio this morning that Woolies would honour Masters vouchers in any of their stores - hope it is correct.

[Yanis]

Hard to compete with the green giant I'm afraid. I think they suffered the same problem as Dick Smith though, too little butter over too much bread. I think Woolworths has a habit of generalising too much. The adage of find your core business and stick to it is a lesson they are yet to learn.

It really is a pity.

John

[justonething]

The best scenario I could hope for is that someone from overseas buy the business and turn it into a franchise, like Good Guys or Auto Barn where individual owners will give his/her own business the customer focus that bunnings generally lack.
Given that Bunnings have just announced their investment into the UK market. Masters would provide a platform for the UK crowd get into Bunnings backyard.

[rtyuiop]

Bit of a shame, they occasionally had really good online specials. Hopefully someone buys it and can turn it into effective competition for the big green shed.

Seemed like something was horribly wrong with their management when they announced a while back some changes to account for seasonal differences between Oz and the US, and the different labour market here - just astonishing they didn't realise that before they opened!

[Yanis]

If the sell up watch out for great deals on Bessey clamps.:;

john

[rtyuiop]

And titebond!

[I_wanna_Shed]

If the sell up watch out for great deals on Bessey clamps.:;

john

EXACTLY what I'm hoping for!

[Tonyz]

Woolies just announced they will buy Lowes share of Masters chain and then they will try to sell it off, otherwise close it down over time.

Slobface Palmer has just put Queensland Nickel into administration. while I feel no pity for him I trust that it can be salvaged for the Townsville workers.

[Grahame Collins]

Here in Mackay we have a Masters and a Bunnings on opposite corners.

Masters had built first and then Bunnings followed. What has been educational was to see the amount of vehicles in the Bunnings car park as opposed to Masters on any given day. Most days just about double the cars in Bunnings.

One wonders if it was the same elsewhere?

What were the factors that pulled the punters into Bunnings over Masters time and again.

One thing that annoyed the dickens out of me was the lack of masters local branch phone contact. You had to go there to see if something you wanted was available.

On the good side they stocked some better quality products.

Sad to see people losing their jobs.

[Yanis]

The only time I went to Masters at the Adelaide Airport they were more or less deserted compared to the same time at any Bunnings. They are part way through the build of the Masters at Noarlunga. Not sure what will happen there now.

John

[AlexS]

home depot or walmart or similar may buy it. Probably a good buy given the motivated seller :)Wesfarmers, owners of Bunnings, have just announced a friendly takeover of Home Depot.

[BamBam53]

It would be a shame if they shut Masters down. There may be some bargains to be had but a lot of people will loose their jobs.

[Master Splinter]

Please Bunnings, please buy the "Press buzzer for service" buttons from Masters, please.....

[justonething]

Wesfarmers, owners of Bunnings, have just announced a friendly takeover of Home Depot.

Not Home Depot in the US, but takeover is for a much much smaller UK outfit called Homebase.

[Twisted Tenon]

It will be interesting to watch the prices creep up at the West Gosford store now Masters is gone. I find the service there is very good which I can't say for the Masters store. They always seem to be short staffed there.

TT

[Evanism]

Please Bunnings, please buy the "Press buzzer for service" buttons from Masters, please.....

Master Spliter, being from Canberra and experiencing the True Horror of Bunnings here, you know they should be actually called "press here to be ignored" or "press here to magically disapear all staff"

I'd dare say to owners of Sydney Tools, Just Tools, et al are popping the champagne tonight!

[Handyjack]

Am I surprised, not really. When the store does not stock what you want, or due to faulty products you need to go twice. I have learnt to save my time and just go to the green shed or a smaller hardware store.

I feel for the displaced staff who may end up earning a fraction of what they should.

[Master Splinter]

Evanism, you just don't know how to play the game - I think I cracked it it over the xmas holidays:

1) Enter Bunnings, go straight to the Cafe and buy a coffee.
2) Mooch slowly to the section you are interested in, stopping at gondola ends and dump bin specials and generally taking a long, non-direct path to (say) electrical via pool supplies, power gardening and outdoor furniture.
3) While doing this it is imperative that you don't display any signs of interest in your intended purchase; you must look like you are simply killing time waiting for 'er indoors to finish in the gardening section. Make no attempt move faster than a well greased glacier.
4) Upon entering the electrical aisle, stop and stare at the power points and RCD's while taking sips from your coffee cup, perhaps looking at the 89 cent packets of cable saddles, which are simultaneously too big for 1 or 1.5mm T&E and too small for 2.5mm.
5) Zig-zag slowly up the aisle, stopping and looking at random stuff frequently, while continuing your coffee drinking.
NOTE: At no time should you actually reach out and touch any of the merchandise; if you do that, you will break the incantation and you will have to start all over again. This can get expensive on coffee, and on bladder emptying.
6) If you have performed the zig-zag-mooch rituals correctly, a Bunnings staffer will appear as if from nowhere, and ask if they can be of assistance, expecting a "No, just browsing," response from you. At this moment you strike, and utter those dreaded words "Yes, I'd like 15 meters of 2.5 T&E and 10 meters of twin, thanks, and I'd like to find a LED bulb to replace..."

I practised this extensively in the new, $80 million store in Gungahlin with pretty good results. It helps that the car park there is underground, so you know that your car is not heating up while you stalk your prey.

[Boringgeoff]

I have heard a rumour that Bunnings intend to purchase Masters security camera footage and couple it with face recognition cameras. When you attend a Bunnings store they will be able to see whether you have previously darkened Masters doorstep and if, like me, you have not will then be able to offer a 10% discount over and above any discounts already in place. Yee har lucky 'ol me.

[snowyskiesau]

With Masters not having a store in Tassie, I've never know the joy of shopping with them. I've had to make do with Bunnings or the local (over priced) Mitre 10.

[TermiMonster]

Unfortunately, they also own the Tait's timber stores (Home Hardware) which are actually pretty good. I hope someone buys that chain as a seperate entity. I will miss them sorely as they stock a good range for builders, and the service is good (no ultra cheap though).
TM

[skot]

We had a Masters open up just 7 mins away about 12 months ago and it is brilliant. Our closest Bunnings is a PITA to get into as it's on an intersection of 2 major roads with a roundabout. On a Saturday the cars are backed up from the roundabout back onto the major road and takes forever to get in...while the new Masters is closer and a breeze to enter & exit. I will miss them if they close.
Masters staff are friendly and I found a lot of them very knowledgeable about their stock.

[Tonyz]

If we still had our privetly owned Home Hardware, I wouldn't darken buggerlugs door, however Home having closed down and Buggerlugs here I make a real nuseince of myself there. Love trying to rattle their cage.
Years ago I was escorted from buggerlugs Noarlunga by security...that was exciting

[rustynail]

If we still had our privetly owned Home Hardware, I wouldn't darken buggerlugs door, however Home having closed down and Buggerlugs here I make a real nuseince of myself there. Love trying to rattle their cage.
Years ago I was escorted from buggerlugs Noarlunga by security...that was exciting
Well at least you were able to get someone's attention.

[AlexS]

Years ago I was escorted from buggerlugs Noarlunga by security...that was excitingYou can't leave us hanging - how did you manage that?

[Master Splinter]

You can't leave us hanging - how did you manage that?

I've had a similar experience... talk about a double standard in society, though. When Miley Cyrus strips off all her clothes and starts licking hammers for all to watch, it's called 'brave', 'arty' and 'self expression'. I do the same in Bunnings and get called a pervert and weirdo...

(apologies to anyone who has heard that one before)

[cava]

I went to the local Masters today and spent 1 1/2 hours perusing all the aisles except the gardening section.

The staff ignored me, and there were groups of them talking and joking around with each other whilst doing some work.

At times I excused myself and walked right between them - not one said anything. No hello, no can I help you, no lovely day etc.

At one point, near the tool section, I overheard two (2) staff members complaining about the lack of staff to do the jobs. Yet from my perspective, there didn't appear to be much work being done by anyone. I was 2-3 mtrs from them, and they just ignored me.

I also saw one staff member just walking around, seemingly without much purpose. He passed near me several times.

When I came out I counted circa 25 cars in the carpark, of which I would suggest half were staff vehicles.

Just an observation....

[ian]

Here in Mackay we have a Masters and a Bunnings on opposite corners.

Masters had built first and then Bunnings followed. What has been educational was to see the amount of vehicles in the Bunnings car park as opposed to Masters on any given day. Most days just about double the cars in Bunnings.

What were the factors that pulled the punters into Bunnings over Masters time and again.one was that for the first few years, Masters copied the US Lowes catalogue (and the US seasons), so that (for example) gardening stuff was promoted as Australia went into the winter and in the (Australian) spring stuff (like rakes) for picking up fallen leaves were on special.

As far as I know Bunnings started as a relatively small retail chain in WA, and thoroughly debugged the concept before expanding into the Eastern states

Here in Canada, Lowes doesn't seem to "hit the spot" quite as well as Home Deport -- otherwise known as "the BORG" -- Big Orange Retail Giant

[Mobyturns]

We don't have a Masters store in Townsville but we have 3 big green sheds. Service standards at the green shed varies quite a bit. On the two occasions I have visited Masters in Cairns I could not fault the friendly & knowledgeable customer service. Masters carry a range of products that Bunnies don't and both have their "own" brand specific models of power tools etc. Not real fussed on the quality of the 909 brand at Masters though.

[Tritonitis]

I went to Masters on the way home yesterday to spend the last of my gift card.

I said to one of the girls working there "g'day, how ya going?"

Her response? "I want to go home"...

Baffling...

[q9]

On the whole, Australians can't do customer service. Went back for a couple of weeks over Christmas and my impression was that it is just pitiful. Which shop you go to didn't really matter. From the moment you hit the airport, you know you're just a pain in someones backside. Not, you know, the reason they have a job...

[Chesand]

There is one basic rule of retailing -

"If customers do not come into your premises, you will not have a business and the staff will not have a job"

It is that simple.

[rustynail]

Had a boss once who had two favourite quotes:"This job would be alright if it wasn't for the customers." and "You can tell anyone to get f-----, so long as you have a smile on your face."
He lived by both... treated customers with contempt and told them where to go on a regular basis.
Now before you all go into melt down, I must hasten to add, he set up and ran a very successful multi million dollar business, over a thirty year period, until his retirement and the business continues successfully today.
So you tell me what the magic formula is for success.

[Handyjack]

Almost sounds like the owner of the supermarket where my uncle worked. (My uncle passed away 36 years ago). The owner could be rude to the customers and staff, yet his business did well. Probably the thing that hurt it the most was long trading hours by Coles and Safeway.
The business no longer exists now, only the memories of it.

[Christos]

......So you tell me what the magic formula is for success.


My guess is that he was a very likable person. So he might have been rude and abrupt but I also believe that he might have been fair.

[Tonyz]

In a previous life I had a lawn mowing irrigation business.
I had just been to Hugle Hoyle irrigation and purchased retail a 9 station Hunter automatic irrigation control box $99. damn good price.I did not have a trade acc as I wasn't legally a business....:B anyway into the new big green box got a few items and walking past their garden section spied the same Hunter including serial number @$199. thinking there was a mistake I phoned Hugles and confirmed that was there standard price.

Hmmm thinking I could make some $$ based on bunnies then better it by 10% questioned their pricing, firstly staff member then supervisor then manager, all who accused me of trying to rob them. I phoned Hugles back and the bunny manager refused to talk. I was asked to leave due to my bad attitude to staff.

Stupid manager shouldn't have said that, I created a bit of a stink...no foul language but stating in a very loud clear voice they were not prepared to meet their obligations.

Few days later I contacted head office in WA and they suggested I had not even been in the store.

[Grahame Collins]

An individual who is basically the head of the company who directly deals with the customers is very different from a board the manages the likes of Masters who have little to no contact with the customers or would be customers.

The question we are seeking an answer on is what could Masters do better at as a retailer?

Reading some of the review sites has been instructive where many indicated a high dissatisfaction with masters due to dealings with fitted kitchens .Complaints were about fitting and measurement errors that Masters were too slow too fix.

My belief is that Masters have not perfected feedback and rapid response mechanisms with their customers that are common place in many other businesses that retail to the public.

I know that I tried for for some 4 months to buy a chisel advertised online that that the local branch did not have,I did the personal report at the counter and in place of the email I was unable to send, mailed the General manager. . I pointed out the electronic catalogue failings and lack of response to previous across the counter inquiries.I also mentioned that the Lowes sway of doing things did not sit well with Australians -like not being able to phone them up. I never heard a word back.

A goodhearted WWF member furthere south than I purchased the chisel for me and sent it on (yes I repaid him) but it should not have come to that.

Things like that influence your choice of retailer when you go to buy something from that point on.

[david.elliott]

My mate purchased a M kitchen for the granny flat and experienced exactly as you have mentioned.

$2500 to fit the kitchen, brand new place, 3 guys, should have been a 1 day exercise..did lose a day trying to sort out to a wrong size cabinet install. Agreed a workaround with the kitchen manager from the nearest store who did the 2 hour round trip. Twice. Once to see the problem, then back with another cabinet...

3 days on he walks into the kitchen to the sight of one of the guys, drill in hand, about to drill a hole in the cabinet door.
Normal Q follows, you think you're doing?
Answer, putting on the handles.
Mates Q: Why? there are no handles...
Guys A: They're in the box...so they must be needed...

[Evanism]

I'm sensing some duplicity on Woolworths part. There are some shenanigans going on in this deal.

I suspect that Lowes will exercise their option and then woolworths will announce a "root and branch review" and flood in cheap Chinese stuff.

The Chinese economy is deeply imploding. The Baltic Dry Index has NEVER been lower. There are some very serious deal to be had.

I'd now wager there will be no closure, just an adjustment of stock now they won't be forced to buy from Lowes.

[rustynail]

My guess is that he was a very likable person. So he might have been rude and abrupt but I also believe that he might have been fair.
You are right on the money.

[Grahame Collins]

I'm sensing some duplicity on Woolworths part. There are some shenanigans going on in this deal.

I suspect that Lowes will exercise their option and then woolworths will announce a "root and branch review" and flood in cheap Chinese stuff.

The Chinese economy is deeply imploding. The Baltic Dry Index has NEVER been lower. There are some very serious deal to be had.

I'd now wager there will be no closure, just an adjustment of stock now they won't be forced to buy from Lowes.

Yes but I fear we the consumers won't see a better line of products,just the very opposite a line of dollar store quality tools marketed under Masters housebrands.
Rebranding products is something they excel at in the grocery business. Somehow I don't think the same will apply in the home improvement business.

[Chris Parks]

I was in Masters at Chullora Yesterday and all the staff were courteous and helpful so as with any chain it depends on the management and the floor staff being customer focused.

[DaveTTC]

I liked them. Shame to see them go

Dave TTC
Turning Wood Into Art

[crowie]

I liked them. Shame to see them go

Dave TTC
Turning Wood Into Art

Talking to a good mate at the big new Penrith store today and the "going rumor" maybe very premature, it was more about appeasing the share holders and apparently the share price has now rebounded, so not so much fuss. Personally, I hope they find there feet as quick as practical as a single big store hardware warehouse can't be good for the consumer.....crowie

[ian]

I suspect that Lowes will exercise their option and then Woolworths will announce a "root and branch review" and flood in cheap Chinese stuff.

I'd now wager there will be no closure, just an adjustment of stock now they won't be forced to buy from Lowes.
Why would Woollies bother.
The Lowes "cheap Chinese stuff" appears to carry the "Kobalt" house brand -- the items are probably made in the same factory on the same production line as other "cheap Chinese stuff" sold by other retailers.

As far as I recall, what Woollies got from Lowes was a hardware stock control system and management "expertise" related to what is known as "big box retailing" -- hardware and home improvement items.

In Canada, the local Lowes / Home Depot / Rona is where you go for a new washing machine, kitchen, electrical appliances, bedroom storage, etc -- Ikea is more a niche supplier -- and tools and hardware represent a very small fraction of a store's floor space. Everything is marketed to a price -- I'm being very deliberate with the use of "marketed" as I'm reasonably sure that there is not much difference in quality at the lower price points


We can debate how good a fit the Lowes corporate culture was for Australia, but from Woollies perspective working with Lowes would have been much less expensive compared to creating their own "home improvement" stock control systems.


What I find illuminating is the apparent "problems" with Woollies appear to have close parallels with those within Coles Myer about a decade ago -- too few at the very top have much experience of retailing.

[BobL]

On the whole, Australians can't do customer service. Went back for a couple of weeks over Christmas and my impression was that it is just pitiful. Which shop you go to didn't really matter. From the moment you hit the airport, you know you're just a pain in someones backside. Not, you know, the reason they have a job...

I agree we struggle to match the standards available in many other places.

The best hardware store I have ever been to is McGuckins in Boulder (USA). The average age of the staff must be about 60. They are nearly all ex tradies and the all know a lot of stuff and exactly where everything is in the store. Best of all if something in their store is not fit for the customer's purpose they won't try to sell you a half arsed solution and they will tell you where you can go, to get a better solution!

[rustynail]

One of the luxuries of being a large retailer is the ability to take on and or drop a line as the need arises.

[skot]

Tonight I saw an ad on TV for electric gardening tools from Masters......not sure if I would buy an appliance with a 1 year warantee from a company that may not be there next week let alone in a year's time to honour that if the tool breaks.

Pity..I like Masters and have been buying from them in preference to Bunnings for over a year now.

[Grahame Collins]

With the amount of money involved and the fact that Masters are being closed - not bankrupted- would not the AAA step in and order Woolies to put certain monies aside?
to Maintain warranty liabilities.I mean its only 12 months and not likely to be mega millions in value.

[q9]

as a single big store hardware warehouse can't be good for the consumer...

Bunnings only has about 17% of the home improvement market. Big player for sure, but far from a single player.

Tons being written in the financial sections since the announcement. Looks like poorly thought out and implemented strategy, with the wrong objectives. Bit of an own goal.

[Dodgy Dovetails]

Did you gents divide your time between Bunnings and Masters, or did you have a set preference for one or the other? (probably for the former.) I heard that the clean, shiny floors of Masters put off the likes of dusty types like you. (Your dust extraction systems notwithstanding. :D ) Would you prefer for Masters to be picked up by someone else and so continue to provide competition to Bunnings?

Competition is largely held to be a good thing. Even better though is a monopoly supplier, so long as you are the supplier. It is the difference between being a price taker and a price maker :wink:. Admiittedly though, that does limit the beneficiaries down somewhat! So you'd better revert back to the opening sentence of this paragraph!

Just as a matter of interest, what do you think are the strengths and weaknesses of the two stores?

Do you think Masters will be picked up by someone else and would you prefer it to?

I've been following the saga as an interesting example in Australia of capitalism, competition and marketing. However, as these businesses have probably become major suppliers for your needs (as the smaller hardware stores have been shut down) you probably have more "on the ground" opinions.

[shedbound]

I live in a rural area so any hardware is a bit of a drive, so convenience is not a consideration, I have only been to Masters once for a sticky nose and liked what I saw, unfortunately I dont have one any where near me, My preferences lay with the smaller family run hardware stores, The price is within a dollar or two of the major hardwares and with a bit of haggling sometimes the item can be bought cheaper. Haggling is something Bunnings wont do.
Given the option of the two I would shop at Masters, I have a major dislike of bunnings ever since the opening of their first store in Mentone. My mates worked at the local Mitre 10. They lost their jobs before Bunnings opened the doors. I personally think part of the Bunny's business model was to shut every small shop down to gain the monopoly, right down to the supply chain. (i.e pine, not sure whether their takeover of the Carter Holt mill at Oberon came to fruition?) In part I blame the consumer. but I wont get into that argument.
Be nice if say someone like Costco(for instance) stepped in and grabbed Masters, I'd hate to see the cost of our hobbies with only one major supplier.
joel
I

[Dodgy Dovetails]

Ha ha! Sorry, a rookie mistake. I started a thread on this very topic without noticing this one. :B Mod, maybe you can just copy and paste my comments in that orphan thread to here, and delete my thread. :D

[Big Shed]

Ha ha! Sorry, a rookie mistake. I started a thread on this very topic without noticing this one. :B Mod, maybe you can just copy and paste my comments in that orphan thread to here, and delete my thread. :D


Look at post #58:2tsup:

[Master Splinter]

Personally, I'd like Masters to be picked up by some other business and reinvigorated.

The other day there was an ad in the AFR from Jaycar Electronics, seeking interest from landlords currently leasing space to Dick Smith stores, and they specifically said they were not interested in shopping mall locations (which to me is where the entire original Woolies/Dick Smith strategy started coming apart many years ago), as men didn't like shopping malls.

I think Masters needs have the same sort of knowledge of who they are trying to appeal to, and what market they are trying to serve.

The whole Masters 'lets have whitegoods retailing, because (reasons)' to me is made on the wrong sort of customer expectations. To me, it was always like a pretend hardware store where they weren't quite sure what they should be selling. And the whole 'we won't sell you kitchen bits, we want to sell you the entire kitchen' was another bizarre decision. They were too into the idea that their market was the people who watched home renovation shows, not the people who do it for a living or the people who do it for a hobby.

They also need to focus on differentiating themselves from Bunnings. They made some attempts at this (stocking timber like poplar and red oak) but this got given the flick in favour of Tassie Oak and pinus crapiata; but if they had worked their Lowes connection right, (looking for novelty and uniqueness to bring to the Australian market) they could have done well in ways that Bunnings seems to pass over (see some of the tool lines that Supercheap Auto stocks).

[ubeaut]

Home Depot and Lowes seem to build almost opposite each other in Houston Texas. Drive past any of their outlets there and the Lowes carpark only ever had about 20% of the cars in them that Home Depot had.

Son went to a Bunnies last week (not sure where exactly) but he had to drive around to get a car park. Masters was opposite and had 2 cars in their carpark.

In Geelong the carpark at Bunnies is always very busy especially on weekends, Mitre 10 is about the same.

Went to masters in Ballarat on Saturday to redeem a $100 Gift Card. Had wife, son, his wife and 2 x 5 year old grandchildren with me. The kids loved the big blue car which masqueraded as a shopping cart and the rest of us agreed that the main reason they must be having trouble was because there were not many recognisable brand names the shelves.

Not saying they weren't good brands or weren't good products just that they weren't recognisable and I'm sure the average Joe wouldn't walk in straight off the street and buy a product with a name he had never heard.

Cheers - Neil :U

PS went to redeem $100 Gift Card and ended up spending over $300 on all sorts of other stuff so it wasn't a complete loss for them. To me they're kind of the Aldi of hardware shops. Lots of stuff but not the choice of stuff that I want to buy topped off with some weird specials to drag you into the shop. Alsi seem to have been able to get it right for a lot of people Masters haven't quite got it. They need to recognise that this is Australia and not the USA.

PPS No I don't shop at Aldi and never go after any of their specials. Rather pay full price and know what I'm getting. I'm not knocking Aldi, for people on a budget they are a godsend.

[ian]

Personally, I'd like Masters to be picked up by some other business and reinvigorated. you might have to forego this. As a business, Masters consists of the sites the stores sit on -- are they owned or just leased to Woollies? -- and the stock control and ordering system. Who will end up with the latter is probably the key to what happens in the end.

While we think of retailing as the range of choice and the price at the cash register, the real "business" is knowing what is selling and what is not and what seasonal items can be flogged, either at a big mark-up or huge volume, but preferably both.


The other day there was an ad in the AFR from Jaycar Electronics, seeking interest from landlords currently leasing space to Dick Smith stores, and they specifically said they were not interested in shopping mall locations (which to me is where the entire original Woolies/Dick Smith strategy started coming apart many years ago), as men didn't like shopping malls. me thinks it more likely related to a shopping mall's business model -- $xxx per sq.m of floor space PLUS 25% (or more) of turn-over. It's one of the reasons behind the "Australia tax". Coles and Woollies get very special deals because they are "key stone" tenants who attract traffic to the mall.


The whole Masters 'lets have whitegoods retailing, because (reasons)' to me is made on the wrong sort of customer expectations. To me, it was always like a pretend hardware store where they weren't quite sure what they should be selling. And the whole 'we won't sell you kitchen bits, we want to sell you the entire kitchen' was another bizarre decision. They were too into the idea that their market was the people who watched home renovation shows, not the people who do it for a living or the people who do it for a hobby. but this is how Home Depot, Lowes, and their competitors appear to operate in Canada (and the US?).


They also need to focus on differentiating themselves from Bunnings. They made some attempts at this (stocking timber like poplar and red oak) but this got given the flick in favour of Tassie Oak and pinus crapiata; I don't think this was what happened at all.

Masters initially stocked Popular and Red Oak because they were the softwood / hardwood combinations stocked in US stores. Don't forget, for the first few years, Masters operated with a near complete US catalogue and stock lines. I'm sure I've read somewhere that Masters were selling (or at least unpacking) snow blowers in Australia in November/December and I know their lawn mowers (along with their spring plants) were on special in May / June -- just in time for the prime June-July-August summer growing season.


if they had worked their Lowes connection right, (looking for novelty and uniqueness to bring to the Australian market) they could have done well in ways that Bunnings seems to pass over (see some of the tool lines that Supercheap Auto stocks).I've been into my "local" Lowes and Home depot stores quite a lot.
There lots of stuff that is different to that in Australia.
There's stuff which I wish we had easier access to in Australia.
But there's precious little that is "novel" or "Unique" unless you count the giant blow up front yard Christmas kitsch.

I'm not surprised that Bunnings pass over some tool lines -- their target market doesn't want to spend the dollars necessary to buy good tools.
A couple of years ago I was in the tool section of my then local Bunnings when a chap came in looking for a tool equivalent to a Hilti drill. He'd just seen the Hilti in action and been so impressed and wanted to spend $150 on an equivalent from Bunnings -- the Bunnings salesperson was sufficiently "kind" to advise that Bunnings didn't stock a tool equivalent to a Hilti.

[Big Shed]

you might have to forego this. As a business, Masters consists of the sites the stores sit on -- are they owned or just leased to Woollies?


60% of the 63 stores are owned by Masters/Woolworth

Masters closure would create massive retail leasing hole | afr.com (http://www.afr.com/real-estate/masters-closure-would-create-massive-retail-leasing-hole-20160118-gm8944)

[benhoskin]

I hope they stay open, great to have some other choices. I have personally spent over $8,000 with them since they opened here in WA.

[Yanis]

Interestingly I just did a survey for a US magazine and they asked about my visits to various stores including the two separate categories of hardware store and home center. It seems that they wanted Masters to be a "home center" rather than a hardware store such as Bunnings. It appears that this was a miscalculation since Australians typically shop at the hardware store for hardware and electrical stores for our electrical items.

Just a thought.

John

[Grahame Collins]

It seems theres a reasonable time line.Found this online in their catalogue

Public Announcement from Woolworths

Woolworths Limited has announced that it intends to exit its home improvement businesses, including our 63 Masters Home Improvement stores, and our Home Timber & Hardware business.

This process will take several months and the business will continue to trade normally through this period. Woolworths will honour all gift cards, product warranties, returns, and lay-bys and the completion of any contracted home improvement projects such as kitchens, bathrooms and floor coverings.>

[aldav]

How many members have noticed ads for 'GotStock' during their travels on the net? This is an online tool and hardware business set up by Wesfarmers (parent of Bunnings) that supplies many of the 'more serious' tools/products we can use and/or aspire to own. This is their initial effort to put your local tool specialists (Gasweld, Total Tools, etc. etc.) out of business. One specialist tool supplier has bitten the dust in Albury in the past few years due to the Bunnings onslaught already.

In Albury/Wodonga we have the choice of two general hardware suppliers, Bunnings at multiple locations and Dahlsens at one location 10 minutes out of town. That's to service a population of about 100,000 people. All the other hardware retailers have been put out of business by Bunnings, and Dahlsens have reduced to one location and cut their store size by 50% in the past 3 years. If our local tool specialists go bust we'll be that much worse off. Much of the stuff Bunnings sell, particularly as far as tools are concerned, is a very limited offering and there is a lot of junk amongst it. I like to have a choice of a range and quality of tools and Bunnings simply don't offer this in many areas of their product offering. Because Bunnings have a virtual monopoly the service levels are very patchy, but I would generally describe them as 'poor'. There are times when I receive good, knowledgeable service, but they are certainly in the minority. I find I very often know more about products, processes and where to source what people are looking for than Bunnings staff members. Many of their staff seem to have the view that if they don't have it nobody would possibly want it, and they can offer no advice as to where it can be obtained even if it is available from another retailer in the town.

Yes, maybe Woolies should have stuck to groceries, grog and poker machines (how you couldn't make money out of them is beyond me), but any competition offered up to the Bunnings juggernaut can only be a good thing as far as I'm concerned.

Cheers,
David

[skot]

I have not seen the GotStock ads but even if I did I will stick to Trade Tools for my gear

[Handyjack]

Every so often I am asked to supply and install a clothes line for a client. Over the years I have found that Hills is perhaps a better quality and certainly has a better method of tying off the ends.
Bunnings is my preferred supplier of larger hardware items and they used to stock Hills.
Now Hills has an exclusive deal with Woolworths so there products are not stocked in Bunnings but are in Masters.
I do not enjoy going into Masters, and in fact drive past them to go to Bunnings, however if I want a Hills clothes line, I need to go to Masters. If however Masters close, who is going to sell Hills clothes lines? I cannot see myself going into perhaps a large shopping center to go to Big W, and will they also have bags of concrete for ground kits? It will get interesting.

I will agree, Masters have some good tool lines with Hilti and Haitachi as well as Bosch. If only there website would match the actual stock in the store, or perhaps it would be better off not trying.

[Big Shed]

My son used to work for Hills.

Bunnings used to buy quite a few products from Hills, including the clothes hoist.

Bunnings in their wisdom decided to have most of the Hills products copied and manufactured for them in China.

Hills no longer manufacture these products in Australia but also have them made for them in China. This includes, the Hills Hoist, play equipment, ladders, the list goes on.

Drive past where the Hills factory was in Edwardstown SA and you will find another empty site destined for, you guessed it, a shopping centre.

[DaveTTC]

Was wondering what they were going to do with that site

Dave TTC
Turning Wood Into Art

[Simplicity]

If we are only left with Bunnings
It will be very very price scary world of hardware.

And I just noticed Bunnings has made it in to my spell check immmmmmm

And what does the governed think of only one supplier ????

[Chris Parks]

If you do a Google search for anything that Bunnings stock, let's say "Makita Drill" the first result is always Bunnings. I don't profess to know how that is done but it must take a lot of clout to do it. If that search is repeated with say BING Bunnings are no where in sight on the hits you get.

[ian]

Businesses pay Google to be placed at the top of the search result list

[Grahame Collins]

You pay Google and magically first up is your site,

Google almost anything else and bloody Amazon comes up.

[Master Splinter]

You optimise the hell out of your site, ensure good keyword use, pay careful attention to links and have lots of country relevant traffic, and you too can end up on top of the Google search list - for example, a search for "woodwork" returns this site as the fourth entry, after Wikipedia, Fine Woodworking and a site called Woodwork Basics.

Bunnings is probably the largest retailer of Makita drills in Australia, so it's unsurprising they are at the top of the list for searches originating in Australia.

You can always add "-bunnings" to your search query to not include their results.

[Chris Parks]

I didn't realize that you can pay to win the search results but for everything they stock? That must take some doing. For all we criticise it Wesfarmers have come a long way in not much time and the shareholders must love it.

[Tritonitis]

It's only a small thing about the Masters site but still gives me the irits...

Every time I visit their site I have to enter my postcode to get pricing...

...

[mark david]

I called into one store last night and purchased 3 gallons of Titebond III :yesmaster:
Given Woolies seemingly inept management, Masters demise was inevitable.

[Master Splinter]

I have a few large containers of Titebond chillin' in the climate controlled atmosphere under the laundry sink. Now there's a line Bunnies should pick up...

[bsrlee]

Went to Bunnies today to spend a bit, I was assured there would be a person in the section to help get my goods off the shelves. Riiight. Not a sign of anybody in that half of the store, I ended up getting all the stuff down myself, loaded it onto a cart and only when I was leaving that section an employee shuffled out of the stacks and just gave me the fish eyed stare. Went to another section, same story.

Good to see that Bunnies service is on the way down again now that the writing is on the wall for Masters.

[Yanis]

Went to Bunnies today to spend a bit, I was assured there would be a person in the section to help get my goods off the shelves. Riiight. Not a sign of anybody in that half of the store, I ended up getting all the stuff down myself, loaded it onto a cart and only when I was leaving that section an employee shuffled out of the stacks and just gave me the fish eyed stare. Went to another section, same story.

Good to see that Bunnies service is on the way down again now that the writing is on the wall for Masters.

All to do with expectations. I go into Bunnings not expecting service of any level and my expectations are always met and even occasionally exceeded. I am never disappointed when expectations are met!

John

[shedbound]

All to do with expectations. I go into Bunnings not expecting service of any level and my expectations are always met and even occasionally exceeded. I am never disappointed when expectations are met!

John

the staff do exist, if you dont blink occasionally you will see a maroon flash across the ends of the isles

[I_wanna_Shed]

How many members have noticed ads for 'GotStock' during their travels on the net? This is an online tool and hardware business set up by Wesfarmers (parent of Bunnings) that supplies many of the 'more serious' tools/products we can use and/or aspire to own.

Cheers,
David

Yep. Got stock is an online venture by Blackwoods (owned by Wesfarmers). Online doesn't mean cheaper (more specifically, without the usual much larger overheads) in this instance. It comes with the usual heavy Blackwoods mark up - which really defeats the purpose of operating a play area online.

[Steve Lowe]

A little disapointed I really dont like Bunnings. And Masters did carry goods that I cant seem to find else where

[snowyskiesau]

Well I might never have a Masters down here but as from today, I do have a Carbatec which is nice.
I did drop into Bunnings to say hello to a few items but didn't take them home.

[aldav]

A little disapointed I really dont like Bunnings. And Masters did carry goods that I cant seem to find else where


Hi Steve,
Leichhardt in Sydney?