Page 46 - HW May-June 2020

global eyes
ACCC rejects Dewalt price proposal
EARLY THIS MONTH, Australia’s ACCC rejected a proposal by Stanley Black & Decker to set a minimum advertised price for Dewalt brand power tools, accessories and attachments.
Having assessed Stanley Black & Decker’s resale price maintenance noti cation the ACCC says it concluded that “any public bene ts that resulted from setting minimum advertised prices for the Dewalt products would not outweigh the likely detriments.”
Resale price maintenance occurs, says ACCC, “when a supplier of goods or services (for example, a manufacturer or wholesaler) speci es a minimum price below which a reseller must not on-sell, or advertise for sale, those goods or services.
ACCC Commissioner, Stephen Ridgeway, says: “It is illegal for a supplier to attempt to set a minimum price, or
a minimum advertised price for their products or services. However, businesses may obtain legal protection for resale price maintenance conduct by lodging
a noti cation with the ACCC,” which is what Stanley Black & Decker did.
“We accept that Stanley Black & Decker’s proposal would have resulted
in retailers earning higher margins on Dewalt products, which may have led to some retailers selling a bigger range of these products. is potential increase in consumer choice was a possible public bene t of Stanley Black & Decker’s proposal.”
“However,” he continues, “we do not
believe that the proposed conduct would have resulted in a net public bene t overall. Stanley Black & Decker’s proposal to set minimum prices related only to prices displayed in advertisements, so consumers would, in theory, have been able to negotiate for lower prices in store. But consumers would also have a harder time identifying which retailers were prepared to o er the best price.”
“Consumers would also lose bargaining power through being unable to ask one retailer to match another’s advertised price. In all likelihood, consumers would have, overall, ended up paying more for Dewalt branded power tools.
“ is may also have led to retailers of other power tool brands increasing their prices, again to the detriment of consumers.”
As such the ACCC will “continue
to investigate claims that some other wholesalers in the power tool market may be attempting to set minimum prices for power tools.”
www.accc.gov.au
John Hartmann leaves Chicago for New Jersey
JOHN HARTMANN, TRUE Value’s Chief Executive O cer since 2013, has now left to become COO of Bed Bath & Beyond.
John (photo right) continues as a Director on the True Value Board, while True Value Chief Commercial O cer, Chris Kempa, has been promoted to CEO and current CFO, Deb O’Connor, becomes the new President and CFO.
e former CEO says: “It has been my highest honor to serve the independent hardware retailer alongside the greatest support associates in the industry. I
am proud of the relationships we have built and nurtured with our members, customers, and vendor partners.
“I am equally proud of the relationship we have built with our nancial
partner, ACON Investments, which has allowed True Value to become the only branded, national wholesaler without
a membership requirement, enabling retailers to invest their hard-earned money back into their business.”
is partnering last year enabled True
Value to shift away from the company’s historical co-op model and become a pure-play wholesaler whilst remaining
a nationally recognised brand o ering a suite of retail services. (For more on this, see our story in the July 2019 issue.)
Aron Schwartz, Chairman of the True Value Company Board of Managers, says of the outgoing CEO: “Over the last seven years, John’s leadership has shaped the company, including the last two with us,
where he was the visionary behind the transaction unlocking over $250 million of retailers’ equity.
“He was the leading advocate of investments the company has made in supply chain, technology, as well as a number of merchandising and marketing initiatives, to better serve True Value’s customers.
“As the company moves into this
next phase of growth, we have a deep leadership bench, with Chris and Deb at the helm, to continue the important investments being made to support the growth and pro tability of our retailers.”
As Chief Operating O cer of Bed Bath & Beyond and President of buybuy BABY (BABY), John Hartmann will working across key areas targeted for transformation including re-engineering the company’s supply chain and technology infrastructure.
He’s not putting his feet up, in other words...
www.truevaluecompany.com
44 NZHJ | MAY/JUNE 2020
MORE AT www.hardwarejournal.co.nz