Page 33 - HW MARCH 2020

global eyes
ACCC concerns for Bunnings-Adelaide Tools deal
FOLLOWING THE ACCC’S announcement in November that it would be seeking views on the proposed acquisition of Adelaide Tools and Oaklands Mower Centre by Bunnings, mid last month the Australian competition watchdog saw fit to “raise preliminary concerns” that the deal might indeed reduce competition in the Adelaide market for tools and outdoor power equipment.
“Bunnings has a very powerful position in hardware, building supplies and
home improvement. Since the exit of Woolworths’ Masters from the industry, Bunnings has grown rapidly and has become by far the leading player,” says ACCC Chair, Rod Sims.
“The ACCC considers that tools specialists, such as Adelaide Tools,
are Bunnings’ closest and strongest competitors for the supply of tools and outdoor power equipment, particularly to trade customers.”
“Adelaide Tools is one of only two tool specialists with a physical presence in Adelaide, and competes strongly on price,
innovation, range, and service quality. “Our preliminary view is that the proposed acquisition would stifle this
competition.”
The ACCC has issued a Statement of
Issues outlining its “preliminary concerns” for which submissions were due by 6 March 2020 and has said it would issue a final decision on 23 April 2020.
www.accc.gov.au
International bits & pieces
B&Q trying new formats – Just as Homebase is trialling new formats, so too is B&Q, which has launched a new “convenience store” in south west London. The smallish 13,000ft2 (1,200m2) space still packs in some 6,000 kitchen-bathroom-tiling-flooring products, with an additional 40,000 available for home delivery or click and collect (many next day). There’s also a paint mixing service DIY tools and essentials, as well as indoor and outdoor plants.
Things go better with... – Meanwhile, rival Kingfisher Group has appointed Kate Seljeflot as Chief People Officer, having recruited her from Costa Coffee, the coffeehouse chain owned by Coca-Cola, where she was Chief People Officer. “Kate is an experienced professional with substantial retail and transformation skills, built on an international career in human resources with Costa Coffee, Diageo and Shell’” says Kingfisher.
Keep on trucking – As part of The Home Depot’s planned US$1.2 billion investment into new types of DC to fulfil next- and same-day deliveries, it’s rolling out no less than 40 “Flatbed Distribution Centers” in its largest markets that are designed to handle even the largest trade orders and loads: “imagine a flatbed of 80-pound bags of concrete, concrete blocks, a bunk of lumberandthenthrowinsomedrywalltogettheprojectdone,”saysthecompany.
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MARCH 2020 | NZHJ 31