DIYWEEK.net

With ironic timing, as Australian chain Bunnings today announced that it had struck a deal to buy Homebase, Woolworths in Australia said it was exiting the home improvement business.
It is calling time on its Masters and Home Timber & Hardware chains, a joint venture with US-based hardware giant Lowe's, either through a sale or, failing that, by winding it up.

Woolworths launched its Masters home improvement big box retail offer in 2011 and it now has 63 stores. Woolworths had hoped to challenge the dominance of Bunnings in the market. However, in a statement today it said: "Our recent review of our operating performance indicates it will take many years for Masters to become profitable. We have determined we cannot continue to sustain ongoing losses from this business."

Woolworths will now acquire the 33.3% stake held by Lowe's, which will allow it to control the exit process.

Woolworths says that if it fails to sell all of the business and has to close any of the operations, it will seek to provide alternative employment opportunities within the Woolworths Group. The home improvement businesses have around 10,000 employees.