Woolworths' US partner stakes claim to products

Q: What store sites have Woolworths/Lowe's applied for in Melbourne and who is overseeing planning approvals?

Using the dummy brand Oxygen, Woolworths/Lowe's lodged planning applications for three Melbourne-area sites. The latest applications cover land in Hawthorn East, North Geelong (on a former golf course), and Burnside on the Western Highway about 20 kilometres west of Melbourne. Victorian Planning Minister Justin Madden has taken control of the planning process and declared the stores a major project.

Q: What is the blue "M" logo application and what services might the new venture offer?

Woolworths applied to register a blue M design described as coiled ribbons for use in retail and wholesale of hardware goods. The application also covers providing advice and hints on building, construction repair, renovation and installation. Industry gossip in the article suggests the venture may offer a hire-a-handyman service to install bathrooms, kitchens and even pools.

WOOLWORTHS' American partners in its new hardware chain, Lowe's Companies, have begun registering dozens of brands of home and garden products in anticipation of entering the Australian market.

By InvestSMART · 7 May 2010

By InvestSMART ·
7 May 2010

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WOOLWORTHS' American partners in its new hardware chain, Lowe's Companies, have begun registering dozens of brands of home and garden products in anticipation of entering the Australian market.

From paint to pre-moulded wood, barbecues to model villages, Lowe's has lodged claims aimed at protecting its rights to more than 30 brand names in Australia.

Woolworths declined to comment on the trademark applications lodged by its partner last month but there is speculation the brands could be introduced to the local market through the Home Timber & Hardware and Thrifty Link chains, which are supplied by the wholesaler Danks. The Woolworths/Lowe's joint venture took over Danks last year.

Woolworths has said before that Lowe's - which will own 33.3 per cent of the joint venture - would offer "global sourcing opportunities".

The first home improvement store of the new business, expected to be called "Masters", is scheduled to open in the Melbourne suburb of Coolaroo in the second half of next year. The two retailers are spending millions on the groundwork.

It is estimated each store will cost about $13 million. The total rollout is expected to hit $400 million.

Still using the dummy brand "Oxygen", Woolworths/Lowe's have lodged another three applications with the Victorian Planning Minister, Justin Madden, for store sites around Melbourne.

Mr Madden took control of the Woolworths planning applications from local councils this year, declaring the stores a "major project" because of the number of people who would be employed in the construction and operation phases.

The latest applications cover land in Hawthorn East - a stone's throw from the headquarters of retailing rivals Coles and Bunnings, in North Geelong on what was the site of a golf course, and about 20 kilometres west of Melbourne on the Western Highway at Burnside.

Two weeks ago Woolworths applied to register a blue "M" design described as "coiled ribbons" which it said would be used for "retail and wholesale of hardware goods", among other uses, including "providing advice and hints regarding building, construction repair, renovation and installation".

That fits with retail industry gossip that the new venture plans to not only sell products but offer a "hire a handyman" service to install bathrooms, kitchens and even pools.

That is expected to generate more streams of revenue for the hardware joint venture, allowing it to earn money from supplying materials to tradespeople and for putting them on its customer recommendation list, directing business to them.

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Frequently Asked Questions about this Article…

What trademarks has Lowe's registered in Australia for the Woolworths/Lowe's joint venture?

Lowe's has lodged trademark claims in Australia for dozens of home and garden product brands — covering items such as paint, pre-moulded wood, barbecues and even model villages. The filings aim to protect rights to more than 30 brand names that could be used by the Woolworths/Lowe's hardware venture.

What is the Woolworths/Lowe's joint venture and who owns it?

The joint venture is a hardware retail partnership between Woolworths and Lowe's. According to the article, Lowe's will own 33.3% of the joint venture, which also took over the wholesaler Danks last year to support retail supply chains like Home Timber & Hardware and Thrifty Link.

When and where is the first Masters hardware store expected to open?

The first store of the new hardware business — expected to be called "Masters" — is scheduled to open in the Melbourne suburb of Coolaroo in the second half of next year, according to the article.

How much will each Masters store and the full rollout cost?

Industry estimates in the article put the construction cost of each store at about $13 million, with the total rollout for the new hardware chain expected to reach around $400 million.

What store sites have Woolworths/Lowe's applied for in Melbourne and who is overseeing planning approvals?

Using the dummy brand "Oxygen," Woolworths/Lowe's lodged planning applications for three Melbourne-area sites. The latest applications cover land in Hawthorn East, North Geelong (on a former golf course), and Burnside on the Western Highway about 20 kilometres west of Melbourne. Victorian Planning Minister Justin Madden has taken control of the planning process and declared the stores a "major project."

What is the blue "M" logo application and what services might the new venture offer?

Woolworths applied to register a blue "M" design described as "coiled ribbons" for use in retail and wholesale of hardware goods. The application also covers providing advice and hints on building, construction repair, renovation and installation. Industry gossip in the article suggests the venture may offer a "hire-a-handyman" service to install bathrooms, kitchens and even pools.

How could a hire-a-handyman service affect the joint venture's revenue model?

The article says offering installation and handyman services could create additional revenue streams beyond product sales. The venture could earn from supplying materials to tradespeople and by recommending or directing customers to trades on its service list, effectively monetising both goods and installation services.

What should everyday investors watch for regarding Woolworths and the new hardware venture?

Investors should note the large upfront investment and rollout plan (individual store costs of about $13 million and a roughly $400 million rollout), ongoing trademark activity by Lowe's, and the JV's plans to add services like installations. These are concrete strategic moves highlighted in the article that could influence Woolworths' retail footprint and future revenue streams.