Woolworths’ proposed new hardware business is expected to be profitable right from the start, according to its CEO.
With the already profitable Danks business and what he sees as a current lack of options for consumers, the business should be earnings positive when the first store opens its doors in 2011.
While it seems that in some metropolitan areas it’s hard to go one kilometre without hitting a Bunnings, apparently we are under-serviced when it comes to hardware stores. On the ABC’s Inside Business program yesterday, Woolies’ Chief Executive Michael Luscombe said there was one hardware store in the US for every 90,000 people, while in Australia we have one large format store for every 230,000.
ASX Code: WOW
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For more on this news story:
- The Herald Sun: “High hopes for hardware”