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Our experienced locksmith service division can supply your selected locks keyed alike, master keyed or on security restricted keys, please see our special keying section for details. Online Credit Card payments are processed by our secure Westpac bank e-gateway or Paypal. You are also welcome to pay by direct debit or cheque. Official Purchase Orders, are accepted from Australian Government departments, Schools, Military, Hospitals and Local Councils. It was clear from the outset that Masters wasn't working out as planned. Throwing the Masters monkey from its back won't be cheap for Woolworths, but investors are backing its decision to fold rather than double down on its failed bet, writes Michael Janda.Kenny Rogers famously said, "You've gotta know when to hold 'em, know when to fold 'em, know when to walk away, and know when to run."Woolworths took a big gamble expanding into hardware and it seems like its previous management didn't take the country music legend's advice.
It was a big punt - around $3 billion between Woolworths and its US joint-venture partner Lowe's. And it must have seemed like a good bet back in 2011 when Masters opened its first store.Australia's home improvement market is worth over $40 billion a year, and one of the few retail segments that has been posting consistently strong growth in recent years.It is dominated by one major player, Bunnings, owned by Wesfarmers, which manages to generate roughly a 30 per cent return on the money it invests into the business.To put that in perspective, Wesfarmers only generates about 10 per cent from investments in its Coles supermarket business, even after its much-vaunted turnaround.You would have thought, given the strong profit margins and sales growth that Bunnings achieves, that there would be plenty of room for a significant second player to do at least reasonably well.Not only that, but Woolworths' timing couldn't have been much better. Analysis on the fall of Masters: Five nails in the coffin for Woolie's Masters ventureTimeline: The rise and fall of Masters hardware storesWoolworths' home improvement after Masters failure
While it opened its first few stores during a real estate downturn, the past couple of years have seen a boom in the biggest markets of Sydney and Melbourne.When property prices rise, and investors come to dominate the market, renovations are the order of the day.If you're in hardware, that should mean a roaring trade. It certainly has for Bunnings, but not for Masters.My colleague Emily Stewart did a fantastic analysis piece back in May looking at the five key errors Woolworths made in launching Masters.There's no need to repeat it but, in short, Woolworths came late to the party, missing the best locations - an error compounded by its rush to roll-out stores.Unlike Wesfarmers, a conglomerate used to letting its very distinct businesses operate independently as silos, Woolworths management got distracted by its new hardware venture.Masters also failed to nail down the right product range, store format and workplace culture to make Masters a serious rival to the popular Bunnings.Add to that some naff marketing that failed to resonate as well as Bunnings' tried and tested "lowest prices are just the beginning" advertising, and you had the recipe for a business disaster.
But perhaps Woolworths' biggest mistake was not realising earlier that it should give up while it was behind.While he wasn't in charge during the genesis of the Masters idea, outgoing CEO Grant O'Brien did oversee its implementation.It was clear from the outset that Masters wasn't working out as planned, prompting some analysts such as Merrill Lynch's well-regarded retail watcher David Errington to call for Woolies to abandon it at birth.Those calls only increased as the new venture lost $169 million in the 2014 financial year and pushed back its break-even target from around 2016 to 2019.Agitation for Woolworths to ditch Masters continued to get louder last year as the company's share price plunged from more than $30 in January to a nine-year closing low of $22.49 in December.The share slump cost CEO Grant O'Brien - a Woolworths company man of 28 years - his job, as well as that of the firm's chairman Ralph Waters.It seems both men were too attached to their hardware baby to cut it loose, so they were cut loose instead.