‘Ten per cent off is a big joke’: Masters fire sale underwhelms shoppers
MASTERS’ going-out-of-business sale has earned a tepid response from Australia’s shoppers — but we did manage to find a few bargains.
FAILED hardware chain Masters has hit the ground walking in its much-hyped fire sale, with customers coming away unimpressed with storewide discounts of a paltry 10 per cent off ticket prices.
It’s the second time this year curious shoppers have ventured into unfamiliar territory to pick over the remains of a failed retailer, following the collapse and liquidation of Dick Smith.
On a visit to Masters’ Northmead store in Western Sydney on Tuesday, shoppers looking for a bargain appeared largely unimpressed at what was on offer. Too little, too late, seemed to be the general consensus.
“It’s a big joke,” said Margaret Loader. “We won’t be coming back. Ten per cent off is a big joke.” Husband Brian said the discount was “probably just bringing it back to the normal price” compared with rival Bunnings.
“It’s doing a great deal of damage to Woolworths,” he said. “It’s just confirming my assessment of them as aggressive and unscrupulous.
“I don’t know how any major store thought they could continue fooling customers with these kinds of prices. The only ones laughing in this whole thing are Aldi.
“It’s sad for people who invest in a business like this.”
In the garden section, one woman advised news.com.au to “go back to Bunnings”. “That’s where we’re going,” she said. “Everything’s dearer here — and this is on sale.”
In the hand tools aisle, one shopper complained that “it says 10 per cent off the ticket price but it was probably 20 per cent more expensive” to begin with.
“They’ve got all these brands you’ve never heard of because they’re in bed with that American mob,” added another.
On Facebook, customers were equally unimpressed. “Still cheaper to go to Bunnings, sorry,” wrote Nathan Garnet. “Your discounts aren’t much chop and if it’s a [sale] to get customers in you’re going to be disappointed.”
Sal Carrero said it was the “worst fire sale I have ever seen”. “The prices were cheaper the week before,” she wrote.
Alan Johnson added: “Triton Tools is a Masters-only brand and so far they have offered about 10 per cent off! That is less than their previous sale discounts. Come on, Masters, give loyal customers a reason to walk in let alone buy!”
But while the customer reaction has been mixed, there are bargains to be found. On a basket comparison of 10 items available at both Masters and Bunnings, Masters came out cheaper on all but three.
In the hand tools section, an Estwing Claw Hammer will set you back $80.10 on sale at Masters, compared with $65.95 at Bunnings. Hi-Vis Vests, discounted to $8.96 each, are still cheaper at Bunnings at $6.95 each. And a Bosch 2300W Electro Blower/Vac is $129 at Bunnings, compared with the discounted Masters price of $134.10.
Paint, in particular, is a bargain at Masters at the moment, with discounts of 10 per cent on already-cheaper lines than those stocked at Bunnings, with some brands up to 50 per cent off.
A standard 4L tin of mid-range white ceiling paint, for example, is currently $33.21 at Masters, compared with $42.50 for a comparable brand at Bunnings.
The biggest savings to be had at Masters are naturally on the pricier items. You can grab a McCulloch 350mm 36cc petrol chainsaw for $188.10, which is $16.90 cheaper than Bunnings. And a Bosch 18V cordless combi drill is $22.90 cheaper at $206.10.
With another four months to go until the planned closure of all stores on December 11, Masters will gradually ramp up the discounts as time goes on. The process is being handled by GA Australia, a subsidiary of liquidation specialists Great American Group, which purchased Masters’ stock in a deal announced last week.
Woolworths declined to comment on the sale process, directing queries to GA Australia. GA has been contacted for comment.
Bunnings chief executive John Gillam confirmed the retailer would not price match during the Masters’ fire sale. “It may be unlawful, and is not responsible, for us to price match or beat stock liquidation prices where large volumes of stock are sold below cost,” he said.
“We believe this undermines our focus on delivering long-term value for customers, and may damage competition in the industry as a whole.
“Our price guarantee has supported our policy for over two decades, so ‘if you happen to find a lower price on a stocked item, we’ll beat it by 10 per cent’. This has always excluded trade quotes, stock liquidations and commercial quantities.”
It comes after US retailer Lowe’s earlier this week launched Federal Court action against Woolworths over the failed hardware joint-venture.
Lowe’s, which had a one-third stake in the business, accuses Woolworths of wrongfully attempting to terminate the joint-venture formed by the pair in 2009 and is asking the court to appoint a liquidator to oversee the wind-up of Masters.
On Monday, Woolworths confirmed had become aware of the application filed by Lowe’s but had “yet to be served with documents relating to this application”.
“The transactions relating to the Home Timber and Hardware sale and Masters inventory clearance by GA Australia are proceeding as announced,” Woolworths said in a statement.
Speaking to AAP on Tuesday, the consortium that struck an $835 million deal to buy Masters’ property assets said it was unfazed by the legal dispute.
“It’s a binding contract,” a spokesman for Home Consortium, which includes companies behind retailers Spotlight and Chemist Warehouse, told AAP.
“Home Consortium is unfazed by the development with Lowe’s, which is a matter between Woolworths and Lowe’s to resolve.”
On Wednesday, Justice Lindsay Foster ordered Woolworths and Lowe’s to return to court for an interlocutory hearing on September 15.
MASTERS VS BUNNINGS BASKET COMPARISON*
• Estwing Claw Hammer Vinyl Grip 2402
$80.10 (down from $89) vs. $65.95
= $14.95 more expensive
• Bosch 2300W Electro Blower/Vac
$134.10 (down from $149) vs. $129
= $5.10 more expensive
• Hi-Vis Vest
$8.96 (down from $9.95) vs. $6.95
= $2.01 more expensive
• Shirleys No. 17 Lawn Food 20kg
$29.70 (down from $32.99) vs. $31.79
= save $2.09
• Stanley FatMax 58cm Tool Box
$47.70 (down from $53) vs. $49.98
= save $2.28
• LPG Gas Cylinder 4kg
$31.50 (down from $35) vs. $34.95
= save $3.45
• Stanley FatMax Retractable Knife
$13.49 (down from $14.99) vs. $19.95
= save $6.46
• White Ceiling Paint 4L
$33.21 (down from $36.90) vs. $42.50
= save $9.29
• McCulloch 350mm 36cc Petrol Chainsaw
$188.10 (down from $209) vs. $205
= save $16.90
• Bosch 18V Cordless Combi Drill
$206.10 (down from $229) vs. $229
= save $22.90
(*Masters Northmead shelf prices vs. Bunnings website)
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