Thread: Woolworths enters the hardware business

Does that mean we will have Home W and Thrifty W?

More here

Competition can only be a good thing imo.

Woolies moves on Wesfarmers
Wesfarmers, owner of Bunnings and Coles, fell as much as 10 per cent, or $2.71, to $23.60, after its main rival Woolworths revealed plans to enter the hardware sector with a takeover offer for Danks Holdings.

''Wesfarmers had it all their own way with the Bunnings Warehouse business ... and the fact that Woolworths are now moving into that space with the potential acquisition of Danks, then that is clearly creating some competitive concerns,'' Mr Halliday said.

Indeed, but it will be interesting to see how that will work as I was under the impression that Home Hardware and Thrifty Link stores were all independently owned, as per the Mitre 10 model.

It is certainly going to put even more pressure on Mitre 10, already quite a few of their warehouse stroes have either closed or been taken over by Bunnings.

So the hardware business is going to be a Coles-Woolworths domain as well, as is petrol.

Chemists next?

FYI

Woolworth's to create JV with Lowes (US) to move into Australian "big box" hardware... or as they call it.. the home improvement sector.

http://www.bloomberg.com/apps/news?p...d=aT1GouRhCCJs

cheers
tom

Lowes is definately a "go to" store
Way better than Home Depot ( which is similar to Bunnings)
On a par with Menards, depending on what you want to buy.
www.lowes.com
I would normally shop at Menards, when I was in Chicago, but that was because it was closer than Lowes. Home Depot as a last resort.
They run a pretty tight ship, it will be good to have a choice.

but it might mean the end of all the small hardware stalls

Originally Posted by tomnewby

FYI

Woolworth's to create JV with Lowes (US) to move into Australian "big box" hardware... or as they call it.. the home improvement sector.

http://www.bloomberg.com/apps/news?p...d=aT1GouRhCCJs

cheers
tom

sad to say we are going to be owned by those bludgers soon (grog,petrol, mobile phones,etc ,etc, etc , now hardware) what are we going to do when they have removed all the opposition and the prices start skyrocketing? scary stuff really,bunnings aint so bad ,it only sells crap because we buy it ...............bob

quite true bob. they have tentacles that reach into every part of lives....

[QUOTE=Big Shed;1021640]Indeed, but it will be interesting to see how that will work as I was under the impression that Home Hardware and Thrifty Link stores were all independently owned, as per the Mitre 10 model.



QUOTE]

My understanding is that Woolies & Lowes are buying Danks, which is the major supplier to Home hardware & Thrify links stores, but not the stores themselves.

Given that they are small footprint stores, it is unlikely they would be competition for the new Woolies mega hardware stores, so no reason why Danks wouldn't keep supplying them.

The story said the 1st of the new stores won't be open for at least 2 years, so plenty of time to sort that out.

So what will the new venture be called? The two names don't seem to blend very easily.

Woolowes? How about Lowesworth?

Im with Bob as well, remember the stoush over pharmaceuticals?

Wesfarmers (owners of Bunnies) own Coles so competition gets more consolidated. A bit like the banks.

You have to bear in mind...... Lowes is still a big box store, like Bunnings. It doesn't specialise. If you want high end tools or specialty timbers you will still be shopping at the little guys who are willing to stock those sort of low turnover, limited market items.

Originally Posted by switt775

My understanding is that Woolies & Lowes are buying Danks, which is the major supplier to Home hardware & Thrify links stores, but not the stores themselves.

Given that they are small footprint stores, it is unlikely they would be competition for the new Woolies mega hardware stores, so no reason why Danks wouldn't keep supplying them.

The story said the 1st of the new stores won't be open for at least 2 years, so plenty of time to sort that out.

So what will the new venture be called? The two names don't seem to blend very easily.

Woolowes? How about Lowesworth?

So if you owned a small Thrifty Link store, or indeed a medium size Home Hardware (and we have quite a big one here in Bendigo-Hume&Iser, as well as a medium size one-Kirkpatricks) would you be happy to be tied to a wholesaler that controls one of your major big box competitors?

I know I wouldn't be, unless of course it would enable you to sell at equivalent prices to the Woolworth big box stores.

The new big box stores won't perhaps open for 2 years, but Woolies/Lowes have signalled that they will be a market force long before that by offering to buy Danks and give Bunnies a bit of curry throught the Home Hardware stores.

Originally Posted by Big Shed

So if you owned a small Thrifty Link store, or indeed a medium size Home Hardware (and we have quite a big one here in Bendigo-Hume&Iser, as well as a medium size one-Kirkpatricks) would you be happy to be tied to a wholesaler that controls one of your major big box competitors?

I know I wouldn't be, unless of course it would enable you to sell at equivalent prices to the Woolworth big box stores.

The new big box stores won't perhaps open for 2 years, but Woolies/Lowes have signalled that they will be a market force long before that by offering to buy Danks and give Bunnies a bit of curry throught the Home Hardware stores.

How would you like your competitor to know what you buy for how much - telling him EXACTLY how to target you and eliminate you?