Carbatec to close major woodworking supply stores at Adelaide, Perth

The chief executive of a national woodworking chain has revealed why he’s shutting his Adelaide and Perth stores as staff face the axe.

Carbatec Adelaide will close permanently in August. Picture: Darren Chaitman

The chief executive of a national woodworking chain says he is closing his Adelaide and Perth stores because customers have “voted with their feet”.

Carbatec this month informed customers its major woodworking supply stores at Stepney and Balcatta would close on August 16.

Carbatec chief executive Simon Lowe said the stores were closing as more customers moved online, adding the retail sector was poor in the present economy.

“More and more of our customers choose to buy online every year, and it makes operating stores harder,” he told The Advertiser.

Carbatec Adelaide will close permanently in August. Picture: Darren Chaitman

“The cost to operate the stores go up, but the revenue they deliver goes down because customers are just changing their habits.

“Unfortunately, it’s reached a tipping point where we really had to shut the stores and change our business model to suit our customers’ needs.

“Our job is to give woodworking enthusiasts in Australia what they need and deliver that where they want it, how they want it, and they vote with their feet, and they’ve gone online.”

Mr Lowe said it was disappointing to close both stores because they had been “part of the landscape for a long time” and nine staff across Adelaide and Perth would lose their jobs.

“That’s sad and disappointing – an unfortunate reality of business,” he said.

“We tried to retain as many people as we could, but without a store, there’s limited options.”

Carbatec Adelaide will close permanently in August. Picture: Darren Chaitman

Mr Lowe said the outlook remained good for Carbatec’s other Australian stores.

“(There are) just much bigger populations in Brisbane, Melbourne and Sydney,” he said.

“So, those stores can support themselves because the rent is only marginally more expensive and I only need slightly more people to manage the store.

“They’re a lot more commercially viable than the smaller stores.

“Will that change in 10 years? If people continue migrate online, we’ll adapt as required to the customer’s needs.”

He said more than half of Carbatec’s customers were online, and products would continue to be available online for SA and WA customers.

The brand’s Adelaide store opened in 2009 and its Perth store opened in 2002.

Its Tasmanian store closed in March.

Originally published as Carbatec to close major woodworking supply stores at Adelaide, Perth