Masters to close

[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. ) 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 . 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. Mod, maybe you can just copy and paste my comments in that orphan thread to here, and delete my thread.