Supermarket giant Woolworths plans to challenge the Wesfarmers-owned Bunnings chain for control of Australia’s lucrative DIY market are off to a flying start, with the Victorian Government fast-tracking approval for 12 sites in and around Melbourne.
Woolworths, which has formed a joint venture with US retail giant Lowe’s, is planning to develop a network of 150 stores across Australia over the next five years as it seeks to unseat Bunnings as the undisputed king of the hardware sector.
When it announced the creation of the joint venture and the takeover of hardware wholesaler in August 2009, Woolworths said it had already scouted 12 sites with another 15 under review.
The approvals, announced yesterday by Victorian Planning Minister Justin Madden, cover 12 sites in Victoria at Hawthorn East, Mornington, Preston, Coolaroo, Wendouree, Oakleigh South, Carrum Downs, Burnside, Knoxfield, South Morang, Bendigo and North Geelong.
Don Stallings, the chief executive of the as-yet-unnamed joint venture said the fast-tracking of the approvals was an important milestone for the business.
“Building a new destination Home Improvement from scratch is a challenging business venture, especially in a retail sector with just one existing dominant player,” he said in a as statement.
“Our plans require our business to get up to speed as quickly as possible to ensure we can deliver a new and competitive offer to the consumer.”
The joint venture eventually expects to have 30 stores in Victoria. The first stores are tipped to open in the second half of 2011.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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