Tipped to absorb losses.
Hardware Australia, the peak industry body for independent hardware retailers and suppliers, said the decision to close Masters will have significant impacts on employees, suppliers and customers.
Hardware Australia executive officer, Scott Wiseman said this decision, coupled with the unification of Mitre 10 and Home Timber & Hardware, could result in independent stores being able to claw back some market share.
“It is unfortunate that the jobs of around 7,700 Masters people are on the line, but we expect a certain level of growth among the independent sector which may be able to absorb some of these unfortunate losses,” Wiseman said.
“Independents generally run a higher staff to customer ratio – given our focus on customer service” he said.
Hardware Australia is urging operators to be watchful over the months of fire sales to clear existing Masters stockpiles.
“This will undoubtedly have an impact across retail sales, however we do believe the level of exposure to independent stores, which generally have a greater trade component to their businesses than Bunnings, should be lessened,” he said.
“This is a historic moment in time in the Australian hardware industry, with the greatest industry changes experienced in a lifetime. But with the result now confirmed, operators can now get their focus back on doing what they do best – excellent customer service and industry expertise.”