Woolworths is pulling out of the Australian Home Hardware market
Woolworths is closing its Masters stores, at a book- loss of $3.2 billion. Financials have quoted it as a discontinued operation with a final post-tax $3.2 billion loss.
Woolworths is selling its Home Timber and Hardware business to the group that owns the rival Mitre 10.
Woolworths bought Home hardware in 2009 for $88 million, and are selling it in 2016 for $165 million. (At least they made a little bit back on that one)
Mitre 10 and Home Hardware have a strong focus on trade customers as opposed to the do-it-yourself market Masters chased.
This might explain why my local Mitre 10 closes at Noon on Saturdays, and is shut on Sundays.
Bunnings appear to be the remaining BIG Home hardware business in Australia.
Bunnings: 18 per cent – Bunnings Revenue: $9.5 billion: 2014-2015
Mitre 10: 4 per cent – Mitre 10 Revenue: Mitre 10 total sales revenue increased by 11.3% to exceed $1 billion for the first time
Home Hardware: 3 per cent – Home Hardware Revenue: ?
Master: ? per cent – Masters Revenue: $930 million: 2014-15
Mitre 10 and Home Hardware: The merged group is estimated to have annual sales around $2 billion with almost 900 stores.