Most of the discussion about the launch of Masters into
the Australian market has centred around the head to head battle
with Bunnings.
Notwithstanding the Lowes US partnership, the market is
excited about yet another Wesfarmerrs vs. Woolworths shoot
out.
After visiting the very impressive opening store at
Braybrook, the nature of the competition between the two retail
giants is clearly evident.
Lots of similarities (not the least being the strong
message of "Find a better price......and we will beat it by
10%"), but many significant differences.
Bunnings HARDWARE vis a vis Masters HOME IMPROVEMENT says
it all.
As the Masters footprint expands, it won't just be
Bunnings feeling the heat. Harvey Norman will see some
serious overlaps in white goods and home decor. Independent
Kitchen Companies will be challenged.
Even Ikea will have some customer visits
postponed.
Then back to the Wesfarmers vs. Woolworths arm wrestling
with Kmart, Target and Big W customers finding reasons to divert
some dollars.
The winners? Undoubtedly the Australian
shopper. The losers? Most likely some local suppliers
who now will compete with yet another international buying reach,
and the consequent margins push in the inevitable price
fighting.
But back to the customer experience. Well lit,
bright open floor space, incredible range, excellent product
presentation, aggressive shelf pricing and staff looking happy to
be part of serving a new customer adventure.
Time, as always, will tell. But on first taste, it
may well be a Masters in Customer Satisfaction.
Kevin Luscombe is Chairman of Growth
Solutions Group