Despite initial criticism, fire sale at Masters doing well, stock could sell out by Dec 11 deadline

Masters 40% Off — The fire sale is meeting internal projection of Woolworth to ensure all stores of Masters are emptied of stocks with the store lowering prices up to 40 percent off. Facebook/Masters Home Improvement

Although shoppers originally considered the 10 percent discount at Masters fire sale “a big joke,” closing out sale of Masters’ hardware business is doing well. Reports say foot traffic through its 61 stories is double-digit, making directors of the company confident all stocks would be sold out by the target Dec 11 closing.

Masters is selling at discounted prices $500 million worth of tools, machines, building materials and white goods. The Australian reports the fire sale is meeting internal projection of Woolworth to ensure all stores of Masters are emptied of stocks with the store lowering prices up to 40 percent off.

While selling its inventory, Woolworths sent human resources executives to its outlets around the country to start plans how to redeploy its 6,300 Masters employees to other parts of the supermarket giant’s business or find them work in other retail chains.

However, Woolworths would face Lowe’s, it joint venture partner in Masters, which filed a lawsuit over the winding-up sales of Masters, including the sale of the inventory, acquisition of 82 Masters sites and properties and sale of the Home & Timber & Hardware business to Metcash for $165 million. The Federal Court gave Lowe’s on the first week of September access to documents related to Woolworths dealings with Masters, including planning and strategy documents and communications about the fire sale.

But suppliers are nervous of the impact of the fire sale on the industry, reports Australian Financial Review. Quoting Peter Steyn, Macquarie analyst, says the liquidation of stock by Masters places pressure on the dynamics of near-term paint market, but its impact may last longer since the paint companies which no longer has the way to market via Master have to look for other venues too reach consumers in Australia and trades people.

One paint manufacturer expected to be affected in the short-term is Dulux and Cabot’s, a wood stain brand, which were pulled out of Masters when it represented 1 percent of total Dulux sales. Nevertheless, the eventual closure of Masters is expected to bring more stability to the overall hardware and home improvements category in the medium term.

VIDEO: Woolworths to shut all Masters stores by December