Hey has anyone heard the news that Woolworth’s is going to be entering the hardware warehouse market?
It is said that they will be providing creating stores very similar to Bunnings Warehouse.
I guess Woolies needs to capture and conquer a new industry, groceries and petrol must not be enough lol….
Should be good, lowes are much bigger than bunnings….
http://www.bloomberg.com/apps/news?pid=20601110&sid=aT1GouRhCCJs
Just as Westfarmers (owner of Bunnings) has entered the supermarket business (with the take over of Coles), now Woolies is doing the opposite.
It may be good to reintroduce some competition back into the consumer end of the hardware business however a duopoly (with Woolies involvement) will probably drive prices upwards once they have gotten rid of the minor players like Home Hardware, Mitre 10 and some of the other small chains. We'll probably get some short-term gains then the quality will head down hill as profits will be based on sourcing the cheapest product from OS & selling it at ridiculous margins (just like home brand in the supermarkets).
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