Entire Masters home improvement inventory on sale beginning Aug 29
Australia would begin on Monday, Aug 29, its biggest liquidation sale in the country’s history following the Friday announcement of Woolworths that it is selling it Masters Home Improvement business. The entire store’s inventory is included in the fire sale as GA Australia, the liquidation specialist tapped to handle the hardware’s sell down, targets to meet the Dec 11 closure date.
Masters has about $600 million to $700 million worth of stock to be sold as Woolworths gets rid of the hardware business. Kevin Olson, general manager of GA Australia, estimates there would be a 30 percent price cut-off on most items.
Olson expects products that are rarely discounted, such as power tools, would be snapped up fast. He said that GA would track the sales on a daily basis to decide which items need to have further price cuts as the Dec. 11 target approaches, reports Eastern Riverina Chronicle.
However, Sydney Morning Herald reports that some big brands are trying to buy back from Masters their stock so their brand would not flood the market at discounted rates. Geoff Dart, hardware and building industry consultant of DGC Advisory, explains, “Some brands don't want to be discounted and basically mortgage their future or damage their brand, particularly if they're with other retail groups.”
He says it is a win-win situation for Woolworths and for the brands if it can buy back the stocks for a bit less than the amount it was sold to Woolies. But there are some items that would likely not be sold at all despite heavy discounting. Dart estimates 15 to 20 percent of Masters’ stock are in that category, most of which are paints.
Shoppers would only find out on Monday if the stock on sale are a do-it-yourself enthusiasts’ dream or be a source of disappointment similar to the Dick Smith fire sale.
VIDEO: Nine New. Masters Home Improvement Closing 11th December 2016
Source: Philip Kahle
