Who is going to buy Masters?

[bob10]

Bunnings may mop up some Masters disasters | The New Daily

[landy]

I'm not so sure that Bunnings would do that. Many Masters stores are within sight of a Bunnings, and arguably failed because they misjudged the foothold Bunnings have. Why would Bunnings go to the expense of buying a stores that cant compeat with what they already have. Surly it's within Bunnings best interests to ensure Masters don't open as competition in any form.

[Judo]

I'm not so sure that Bunnings would do that. Many Masters stores are within sight of a Bunnings, and arguably failed because they misjudged the foothold Bunnings have. Why would Bunnings go to the expense of buying a stores that cant compeat with what they already have. Surly it's within Bunnings best interests to ensure Masters don't open as competition in any form.

I read an article a few months back predicting this and the idea was bunnings would just buy the ones that aren't near existing bunnings stores. Which is partly why they'd only buy a few I guess. I assume they would fully convert the buildings to bunnings stores. They would just take the real estate.

[Homestar]

If a buyer can't be found, one thing is for sure and that is that Bunnings will hike it's prices even further. Not sure if anyone noticed but prices surged at our local Bunnings after the family owned hardware stores were forced out of buisness in this area. They dropped again once Masters came to town, but I bet they are licking their lips now waiting for the kill. Bunnings share price increased 3% on the news Masters was being wrapped up.

Bunnings EBIT is running at 11% at the moment, up to 4 times more than some other large retailers, and twice what parent company Coles is doing, so they are already tearing a new one in the publics collective rear, wait a while and watch what happens...

[bob10]

Bunnings are circling, for sure.

The official position at the ACCC is it cannot okay any moves that will substantially lessen competition and it would not be inclined to let Bunnings swallow the lot.

Things are different with individual stores in locations without a Bunnings nearby ? those they could buy without competition concerns.

A really interesting situation would emerge if there was no other buyer and Masters was facing closure. Then the thinking within the ACCC is that a closure of Masters would represent a significant lessening of competition and Bunnings could be then able to add most of the 63 Masters stores to its existing 324 outlets.

With Bunnings currently adding 20 new stores to its portfolio every year, the hardware group would really spread its tentacles across the Australian home improvement market and presumably have greater power to raise prices. It could also put the squeeze on remaining independent operators

[squizzyhunter]

Dam, goodbye cheap paint.
As the article stated Masters has done a good job yet failed to just get people through the door. And yes why the hell if they try branch into white goods... Jack of all, masters of none

[Eevo]

i like bunnings
they made diy friendly

[Homestar]

i like bunnings
they made diy friendly

I like Bunnings too, I also like Masters. My problem with this is that I don't think Bunnings will care if we like them or not - they are there to maximise shareholders returns which I think they will take the opportunity to do.

The ACCC is a toothless tiger IMO and because Bunnings will only want to buy certain stores, they will get it across the line. As previously mentioned a lot of Masters stores are within spitting distance of a Bunnings store anyway - my local one is just next door, they aren't going to want all the stores.

[mudmouse]

I'll have one of their buildings - it'd make a great shed!

I do recall having a chat with a worker at Bunnings. She said some of their guys work part time at Masters during summer, because it's air conditioned, and at Bunnings during winter. She said the feedback is that Bunnings is more oriented to help people, where Masters is more of a business... I think Bunnings got a head start that could never be overcome.

[DoubleChevron]

They put a massive masters store in ballarat. I've been up there a few times. It's more expensive than bunnings, seems to have less range and the quality is even worse. Every single time I've left without buying anything and driven down to bunnings wondering why I was stupid enough to go out to masters in the first place ..... again.

Masters, don't do "cheap", don't do even "average" quality and don't have a huge range. I don't know who there target market was, but it's business model was no good from day one. You can't be more expensive than the opposition and have less range and ****tier quality. It just won't work.

seeya,
shane L.