Well looks like what we all thought is finally happening, expects closing sales soon I guess.
http://www.woolworthslimited.com.au/page/The_Newsroom/Press_…
Woolworths Pulling out of Home Improvement Sector, No More Masters?
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I mean, what it really comes down to, all things considered, all options weighed up, and geographical implications notwithstanding, what it really boils down to is why would one go Masters if one could go to Bunnings?
Some items are available from Bunnings only, some from Masters only.
To illustrate, just one example: https://www.masters.com.au/product/900034846/hitachi-3-6v-co…The above is not available from Bunnings, and no equivalent product is offered by Bunnings (before some says it: pistol shaped cordless drivers functionality is different). Identical or equivalent products are offered by other sellers (for example Sydney Tools, Just Tools, Get Tools Direct, and so on), but not by Bunnings.
I do not like Bunnings monopoly, and would much rather see some healthy competition. However I would question that "the prices at Bunnings are exorbitant". A few days ago I went to both Bunnings and Masters (large stores very close to each other in Penrith, NSW). I compared many products and overall their pricing appears to be in sync. Bunnings is sometimes cheaper, just one example:
https://www.masters.com.au/product/900046384/bosch-3-6v-lith… ($64.50, previous model)
http://www.bunnings.com.au/bosch-3-6v-ixo-v-cordless-screwdr… ($59, current model)Sometimes the differences in pricing are single cents. Also it is normal practice for both to source items from China with naming rights, thus preventing a customer to do exact comparison and use "price guarantee".
Cheaper because of Masters, because of competition. If there was no Masters, that screw driver at Bunnings could be $70 and you be none the wiser.
Correct.
It's also worth pointing out that Bunnings has the highest margins of pretty much any major retailer in the world. They are overcharging people so much it's not funny.
i can see costco looking at some of the larger masters outlets for new stores. other than that, should the stores be closed i can't think of too many other stores that would use space that size. it will cause a glut of warehouse space on the market though
i can see costco looking at some of the larger masters outlets for new stores.
I dont see WW Group interested in selling a few outlets. It would be all or nothing. If they did, i think probably Ozsale Group would have some interest. They have bought oo.com.au and Deals Direct so they probably would be looking at expanding there operations and looking at multiple warehouses.
Otherwise my money is on Bunnings and im pretty confident that Masters is negotiating with them as we speak, provided the ACCC approves the sale.
bunnings won't want everything though.
i can see bunnings buying the lot but than selling off or leasing out the stores they deem surplus to requirements.
as i said above, there are not too many retailers who need space the size of a masters store.
If some of the stores are making no money, bunnings wont wont them, would be like franklins in the 90s
I'm not sure if I would classify as, the typical home improvement store customer, however, I do feel inclined to put in my 2 cents.
I, with my fiancé, have recently been renovating our first home. All in all, we've probably spent around $10-12K on improvement related cost/s, including tools, materials and carpeting.
During the process of renovations, we shopped both at Bunnings & Masters. However, in every respect, for me and my personal preferences, Bunnings was a far superior shopping experience.
That statement probably sounds generic, maybe even practiced, but, its completely accurate.
Bunnings offers/ed; a more streamlined and clearly defined returns policy (very important to me, as I was short on cash and needed to make sure any purchases were keepers). Bunnings was IMO more sensibly arranged with a much wider and better stocked supply of fixings & bolts. Bunnings staff, usually, were more available to seek assistance from, and, more informed than Masters staff, and on the whole, more polite and approachable. Bunnings stock was more known to me, and, they offered cheaper brands for better prices (I've heard a lot of maligning about Bunnings stocking cheap, nasty brands, but I'm not a tradesman so a cheap one off brand was often exactly what was required).
But probably most importantly, Bunnings stores were more widely available, and, much closer, but even if Masters and Bunnings were right next to each other, the above would still have applied.
Yes, I'll admit, Masters store was cleaner, and it was a bit neater, and, it was slightly better air conditioned, but a; in Winter I don't care and b; I'm not there, in any home improvement store, for long enough to appreciate these things.
I'd be a lot more disappointed if Bunnings was going.
As it is, the only thing that concerns me is that Bunnings may not feel as much financial pressure to keep prices lower, and, of course, it is very sad that so many people will lose their jobs.
Very interesting, thanks for sharing. My personal experience is slightly different: I found that there is little or no difference if one wants to buy "the cheapest" item which does not have to last forever. For example when recently visiting Bunnings, Masters and Super Cheap Auto I found very similar cheap circular saws priced around $50 in all three shops. Frankly, there is no difference between offers in bottom price range from most shops. But each place tries to differentiate from the others by offering some unique items, better service and better shopping environment. While personally I found no difference in service or return policies, I always find some interesting, unique products in Bunnings which Masters does not have - and the other way around. This is why I would be sad to see Masters go, and Bunnings monopolizing the market.
To illustrate: this is one of the most ingenious products I have seen recently, imported from US by Masters: https://www.masters.com.au/product/900037208/hillman-brick-h…
I tried to buy it in Bunnings, explained it to a young sales person, who said: cool idea, pity nobody makes anything like that :)hmm.. what does that do exactly? is it for easier laying of angled bricks that sit out underneath a window? (edit: nevermind.. i see now.. it's simply for hanging item off brickwork)
Yes: a few seconds job, no holes in the brickwork, easy to move, very strong hold. As opposed to drilling a hole, inserting a nylon plug, screwing a hook. No other place in Aus distributes anything similar. Of course of no use for non-brick walls.
Thanks for the feedback.
I think that's a potential problem; Bunnings being such a huge chain will stock only what is profitable, that in general is okay, because most of their stock is usually okay; they also have the policies to back it up.
Perhaps, there simply isn't enough of a market in Australia for two very large hardware store chains. After Masters, whom else has both the capital, and, the nouse to start another attempt at a genuine challenger to Masters?
The way it's now going, for Woolworths, it's looking more likely that they'll only have their supermarket chain left in Australia. Big W stores in some parts of SA are being bought by K-Mart, what is in many ways, their direct rival in that sector.
They should convert all Masters stores into really cool (better than the suburban standard) kids playcentres; nek minnit, make a mint…
Yeah, or another overly saturated market.. 24/7 gyms!
Bunnings may have a few items that are cheap but the majority are a major rip off. Only one example, went to bunnings to buy replacement blades for my victa mower, Bunnings want $13.98. My local independent mower store want $7.98 for the exact same blades (same model, brand etc). So a massive company with enormous buying power like Bunnings cannot beat a small independent store? The manager of the independent store just laughed when I told him what price Bunnings sell the blades at.
Bunnings…."Lowest prices are just (at) the beginning…"
The home improvement sphere is practically turning in a monopoly with Bunnings dominating all
If that's the case, don't be surprised if Masters turns into gigantic Dan Murphy and Pokies palace.
(Hotel collects more rent than just a home (improvement). Dick Smith to throw doubles to get out of jail)
Perhaps Lowe's will increase their stake in the company
Lowes are exiting the partnership, not increasing
I wonder if the likes of Costco or IKEA are planning to open new stores in the existing masters sites. Great way for Costco to add an instant 20 or so stores, all with enough parking and space to put in a fuel station
Everyone, just go to masters from now on so Bunnings won't jack up prices having the whole monopoly
Word is that some Master's are going independent!
That implies a switch to Home Hardware (please no), and what would they do with the massive floor space?
Some ideas:
Bunnings
Unlikely as a whole as I understand many locations are already nearby to existing sites
Possible site by site (20 mentioned above)"Bunnings Home": Bunnings plus whitegoods
unlikely as Wesfarmers generally stick to strengths / working formulasJB Hifi: Expanded floorplan to compete with Good Guys
not sure if the current whitegoods concept is working for them, the floorplan would still be wayyyy too bigGood guys
plausible but still too bigOfficeworks
unlikelyCostco
plausible. not sure if locations are good or overlap with existing sitesSupermarket
no way, completely wrong locations/fitoutSplit physically into two stores
Plausible. Add any two of the above.Give up pack up and sell the leases as general storage/warehouses
Ouch.refer Deserted big box stores of America
Ouch. Ouch. Ouch.
The bigger issue is the business as a whole and what the next steps will be. The actual land and warehouse is a small issue. They would easily make their money back on what they paid on Warehouse/Land if they sold the sites.
None of these are likely as Masters floor space is way too big for most retailers apart from Costco. Others shouldn't even be discussed. Simply not a possibility.
I don't agree with any of those retailers in the list, except CostCo or Home Hardware. Just curious, why the hate towards Home Hardware?
Home hardware is part of Woolworths, the home banner is likely to disappear along with masters. Site is way too big too.
Or the return of Dick Smith Powerhouse!
That made me smile. Best joke of the day!
hopefully Costco jumps on the sites and expands their stores!!!
i wonder if its now worth applying for the business masters amex charge card that comes with a no annual fee? maybe card holders will retain the no annaul fee and amex will change it to a Amex gold charge card when masters stops?
Worth a try :)
I am not surprised, Masters is like the Harvey Norman of hardware, many of their stuff are overpriced. Went there two days ago, it is obvious they have not been competitive at all, though the staff are doing their best to put a brave face. Hope another company takes over as it is good for competition with more players on the block and that has spurred Bunnings to imporve their customer service.
Is masters still doing Kitchens?
They could be profitable for a new buyer. Drop the white goods and copy bunnings buisness plan. Definitely a maket for more than 1 major hardware retailer. I hope someone buys them. I fear what bunnings will do when masters are gone.
This is anocdotal. I shop at Box Hill regularly and since the announcement of the closure it actually seems to be busier than prior.
Another store that I saw said they had a strong month. Now of course strong doesn't mean profitable however I couldn't help wonder if it was decided a little too soon to close down.
How has everyone else found the volume of customers in their store?
I BELIEVE BIG W WILL BE THE NEXT ONE TO GO IS THAT TRUE OR NOT?
It is a shame to see less competition in the market.
There are two Bunnings within 5km radius of my home but the closest Master is hours away. The prices at Bunnings are exorbitant. With their monopoly position, Bunnings can charge however much they can squeeze out of customers.
I managed to shop once at Masters online. I would love to shop at Masters more if there is one that is closer considering their prices are more competitive than Bunnings. Whoever at the Woolworths management planned the store locations doomed Masters from the start.