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Mixed picture for paint

UNITED States paint giant Valspar, which last year bought leading Australian paint brand Wattyl for $142 million, has reported strong sales for its paint range at Woolworths' new hardware outlet Masters, but has warned that a soft local housing market had dented volume expectations.
By · 1 Dec 2011
By ·
1 Dec 2011
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UNITED States paint giant Valspar, which last year bought leading Australian paint brand Wattyl for $142 million, has reported strong sales for its paint range at Woolworths' new hardware outlet Masters, but has warned that a soft local housing market had dented volume expectations.

It is believed Valspar's sales in Australia have suffered since the launch of Masters with its Wattyl range delisted from hardware rival Bunnings with more shelf space given to paint brands Dulux and Taubman's.

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Frequently Asked Questions about this Article…

Valspar bought leading Australian paint brand Wattyl last year for $142 million, according to the article.

Yes — Valspar reported strong sales for its paint range at Woolworths' new Masters hardware outlet, although it also warned that a soft local housing market has dented volume expectations.

Valspar has warned that a soft local housing market has reduced its volume expectations, meaning lower-than-expected demand for paint volumes despite strong retail sales in some channels.

The article says it is believed that since Masters launched, Wattyl was delisted from hardware rival Bunnings and that more shelf space has been given to paint brands Dulux and Taubman's — a change that may have hurt Valspar's sales in Australia.

Greater shelf space for Dulux and Taubman's suggests intensified retail competition and the importance of distribution channels. Everyday investors should note that retail listings and shelf placement can materially affect sales and market share for paint manufacturers.

The article presents a mixed picture: Valspar is seeing strong sales at Masters but has warned that a soft housing market has dented volumes, and it's believed Wattyl's delisting from Bunnings has pressured sales. Investors may want to watch upcoming sales reports and housing market trends before making decisions.

Retail partnerships matter because the article notes Valspar reported strong sales at Masters. Access to major hardware outlets affects visibility, shelf space and customer traffic — all key drivers of paint sales and revenue.

Based on the article, investors should monitor Valspar's future sales updates at Masters and other retailers, any changes in listings at rivals like Bunnings, and broader local housing market conditions that can influence paint demand.