HINEWS AMAZON IS COMING TO TOWN - Hardware News Network
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HI
NEWS
Vol. 3 No. 12
NATBUILD/MITRE 10 HBT CONFERENCE
MORE DETAILS EMERGE BUSINESS SOLUTIONS
AMAZON
IS COMING TO TOWN
contents
Amazon is coming to town
Ready or not, Amazon is just about set to open for business
from an Australian location. Unfortunately, there has
been a lot of unhelpful speculation about what this might
mean. HNN ploughs through some of the background and
research needed to understand what effect this new market
entrant will have on retail in Australia.
38: click to view
Amazon as a grand hack
How did Amazon do it? Right from its origins the company
has been something of a “hack”, upending conventional
expectations to become an extraordinary company. HNN
traces its history, and that of its founder, Jeff Bezos, to
uncover more of what we can expect of it in the future.
50: click to view
HBT Business Solutions
Conference
Hardware Building & Traders (HBT) held a “business
solutions” conference in Melbourne in late October. With
a total of 670 members, including nearly 40 “H” branded
stores, it’s a buying group that helps retailers be truly
62: click to view
Oldfields FY 2016/17
Established for over 100 years, Oldfields is launching a
new product line that is set to take on the top premium
paintbrush category. It’s a new look company, moving
to establishing direct relationships with retailers in the
independent marketplace.
32: click to view
contents - II
Natbuild’s Statement of Claim ABS hardware retail stats
spells out IHG allegations The September 2017 retail figures
National Building Suppliers (Natbuild) has updated its available from the Australian Bureau of
Statement of Claim to provide more detailed allegations Statistics (ABS) confirm that the home
against the Independent Hardware Group (IHG). improvement retail industry has been
Additional individuals have been added as respondents. in a downturn for the past year. Is it
Natbuild is also due to falling house prices, a decline in
continuing its forensic consumer conficence, a bullish stock
examination of data market — or all three?
sources from IHG,
including past email
trails.
27 9
COMMENT
Oldfields has
introduced a new
paintbrush that could When looking at something like the
be a game-changer situation that has allegedly emerged
for the top end of the between National Building Suppliers
professional market. (Natbuild) and the Independent
Its Pro Series offers Hardware Group (IHG), it pays to look
some of the best beyond the individuals involved, and to
performance of any paintbrush available in the world. see how the stress of a recent acquistion
93 7
might have led to unhelpful
behaviour.
Home Improvement
News is a publication of
big box update............................................................12
Net Percent Pty Ltd.
© 2017 Net Percent Pty Ltd indie update................................................................17
Betty Tanddo
supplier update..........................................................19
Publisher
betty@hnn.bz retail upate..................................................................24
0411 031 832
usa update..................................................................87
Scott Lewis
editor-at-large europe update............................................................89
scott@hnn.bz
news............................................................................91
comment
Doing a corporate merger or acquisition, a finan-
cial analyst HNN knows well sometimes says, is
like going for a stroll through a minefield when
you know the location of 98% of the mines. Even
if you’re careful, accidents happen.
This has come to mind due to what has happened recently
between National Building Suppliers (Natbuild) and Metcash’s
Independent Hardware Group (IHG). Should the allegations of an
intrusion by employees of IHG into the Natbuild members-only
website prove true, some blame may be allocated to the people
involved, and some to the management of one company division.
But the real roots of the alleged problem will likely be traced back
to the merger between Metcash’s Mitre 10 division and the Home
Timber & Hardware Group, which led to the formation of IHG.
The rationale for the merger was summed up by the then-CEO
of Metcash, Ian Morrice, like this:
The increased scale of the combined Mitre 10 and HTHG business-
6 es, together with the opportunity to realise significant efficiencies,
will enable us to be more competitive and deliver a better outcome
for both our hardware retailers and their customers.
It’s a simple equation, apparently. You increase scale, control
more retail sales, and this means you can demand better prices
from wholesalers, which will increase the margins of member
retailers, and provide lower prices to customers, driving more sales
— and so forth.
Yet, if we look at the alleged motivation for the alleged breach of
the Natbuild website, something doesn’t really add up. According
to the Statement of Claim from Natbuild, the apparent purpose of
the alleged intrusion was to obtain details of the deals Natbuild
had with its suppliers so that IHG could (allegedly) demand similar
terms.
This follows on from some recent declarations by IHG that it
is definitely the number two company in the home improvement
market at the moment, behind Bunnings, and, significantly, ahead
of Natbuild.
But, if IHG is ahead of Natbuild, and thus controls more retail
sales — orders more volume and/or value of goods — then why
would it have to demand that suppliers give it terms that are
similar to those of Natbuild? Going back to Mr Morrice’s optimistic
statement, surely those lower prices would happen automatically
as a consequence of scale?
hnn.bz
Well, not so fast. Natbuild has, after all, spent the past de-
cade (and more) building up its relationships with its current
suppliers. The suppliers have a known outcome when they do
business with that company, where the newly scaled-up IHG
is a far more uncertain proposition.
It’s hard to tell with these sorts of numbers, but it’s likely
IHG would need something over $2.4 billion in revenues to re-
ally wield the kind of market power it seems to have thought
it might have — which is likely around 20% more revenue
than it does have. It takes market power to overcome inertia.
This is all speculation, of course, but if true, it’s easy to
imagine the kind of situation IHG might have faced. The
merchandising part of the company could have been placed
under immense pressure to make deals that were as good as
Natbuild enjoys.
Over the past decade or so we’ve seen the consequences
that kind of pressure can have. Employees of Wells Fargo
bank in the US, for instance, set about enrolling customers in
new accounts they hadn’t ordered simply to meet quotas. A
number of market traders have violated trading safeguards
to get the returns they were required to generate. Given
enough pressure, even good people will crack, and do silly
things.
Let’s just hope that there will be, should the allegations
prove true, a fair allocation of responsibility. In terms of the
7
individuals involved, many of them have a good track record
in the past, and it would be shame if the industry lost their
experience through harsh treatment. Punishing them undu-
ly might not only be a little unfair, it also will not solve the
problem, which is likely more systemic than accidental.
hnn.bz
A NEW STANDARD FOR IN-STORE DISPLAY
TEL: (03) 9795 6789
FAX: (03) 9795 4567
ROMAK.COM.AU
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statistics
ABS Hardware Retail
Revenue September 2017
The Australian forecast. The flat result terms of pure numbers had falls of over 6.0%,
Bureau of Statistics followed on from poor (rather than trend or with NSW falling the
in this (ABS) has released its results for August 2017, seasonally adjusted), most, at 6.94% down.
update: statistics for retail which indicated a fall Australia-wide retail Queensland also de-
revenue up to Septem- of 0.7%, the steepest sales for hardware clined, falling 3.82% on
•start ber 2017. For the most decline since 2012. For in September fell by the pcp. South Austra-
text
Retails sales
for the trailing recent month, the stats the September 2017 4.88% as compared to lia had the strongest
12 months to reveal a continuing quarter, sales were the previous corre- growth, up 11.44% on
September 2017 slowdown in retail, de- down 0.3%. Most the sponding period (pcp), the pcp, followed by
indicates slowing spite expectations they decline was due to which was September the Northern Territory
growth might improve. Sales discounting, while 2016. New South Wales (NT) on 6.86% up, and
remained flat across volumes remained (NSW), Victoria (VIC), the Australian Capital
• One cause could most sectors, while a constant. Western Australia (WA) Territory (ACT) up by
be a continuing lift of 0.4% had been For hardware, in and Tasmania (TAS), all 1.69%.
reduction in
9 house prices,
combined with a
return to growth
in share prices
Chart 1. ABS hardware retail sales, trailing 12 months to August
hnn.bz
stats
Chart 3 illustrates
these results, along
with results showing
the growth for Sep-
tember 2016 compared
with September 2015.
Only SA and NT show
improved growth.
Looking at results
for growth over the
trailing 12 months to
September, as shown
in Chart 1, it is evident
that growth for the
most recent period has
slowed as contrasted to
that for previous peri-
ods. Chart 2 indicates
these growth rates.
Overall, Australian
hardware retail has
grown by just 1.56%
10 over the 12 months, as
contrasted to a growth
rate of 5.95% to Sep-
tember 2016, and 7.95%
Chart 2, shows revenue growth percentages for the trailing 12 months to August.
to September 2015.
The strongest growth
for the most recent
period has been for the
ACT, at 13.33%, followed
by SA at 8.07%. The
steepest drop has been
for NSW, which grew at
3.27%, contrasted with
10.37% for the previous
period. VIC and WA
show weak growth, at
0.34%, and 0.45% re-
spectively, while QLD
fell slightly by 0.04%.
TAS grew by 1.37%,
while NT fell steeply,
by 5.79%.
Contributing
factors
The growth chart
sees something of a
continuation of the
“bunching” of growth
numbers we have seen
before, though now
SA has broken away, Chart 3, shows revenue growth percentages for the trailing 12 months to August.
hnn.bzstats
as NT and ACT have seeing the beginning
previously. Charts 4, 5 of an exit from hous-
and 6 might give some ing investment, both
sense as to why this is by investors and
the case. According to regular families, and
RBA composite figure, an entry into other
as shown in Chart 5, forms of investment
consumer confidence judged to deliver
has barely managed to higher returns, or to
make it to an average simply be “safer”.
level, and has been less It is too early to
than average for much give a clear judge-
of 2017. Meanwhile, ment on this at the
house prices have moment, but we
entered a period of could say that the
decline. Unlike in some indications for the
previous periods of immediate future are
decline, the share mar- not very positive for
ket, as illustrated by the hardware retail
the ASX 100 and ASX industry.
200 indices, has shown
signs of improvement. Chart 4. ASX 100 and ASX 200 indices for Sept 2015 to Oct 2017.
11 This could indi-
cate that there is a
shift in investment
trends. While it’s not
uncommon to hear
the proposition that
when house prices
are up new dwelling
building picks up, and
when house prices go
down, some of that
expenditure shifts
to renovation and
maintenance spending,
that only works when
alternative forms of
investment are under-
performing. We may be Chart 5. RBA composite Consumer Sentiment index Chart 6. RBA composite Housing Prices
hnn.bzbig box update
Bunnings in Kingaroy &
Cootamundra
Bunnings is a step
in this closer to setting up
update: shop in Kingaroy
(QLD) after South Bur-
•start nett Regional Council
text
Bunnings
Kingaroy gets the approved its develop-
go-ahead ment application at a
recent meeting. The
• Cootamundra company will now
considers Bun- move to square things
nings application with the state govern-
• Bunnings opens ment before it breaks
five stores in ground, according to
12 regional areas the South Burnett
Times.
• Three new Bun-
nings warehous- Not surprisingly, Bun-
es set to open in nings general manager
regional NSW, – property, Andrew Proposed site of the Bunnings in Kingaroy at 2 Walter Road.
TAS and QLD over Marks welcomed the
coming nine decision. He said: offerings in Kingaroy. Support for Absent from the
months We can confirm we While the coun- Cootamundra meeting was Craig
have received devel- cil is prohibited by store Stewart, who is em-
• Woolworths opment approval Queensland law to ployed by Cootamun-
closes chapter on for a new Bunnings consider commercial An extraordinary dra Mitre 10 and thus
Masters; Lowe’s
Warehouse in Kingaroy competition when meeting of Coota- declared a non-pecuni-
Companies gains
and will continue to approving develop- mundra-Gundagai ary interest, and Leigh
USD96 million in
work with the council ment, Cr Fleischfresser Regional Council was Bowden, who was in
the exit payment
throughout the plan- said Bunnings would held recently to discuss Sydney.
• Bunnings in ning process. The new be good for the town. a proposed Bunnings In a letter to the
Kawana QLD warehouse will repre- He said: store. The location of council, Cr Stewart
open for business sent an investment of I’ve heard people say this store is the corner declared he was in
• Bunnings could over $15 million... they are disappointed of Wallendoon and favour of new develop-
open at former In the lead-up to the with us accepting a Hovell Streets, oppo- ment and business in
Masters site at vote, the council was Bunnings application, site Thompson’s Rural the Local Government
Majura Park (ACT) petitioned by a group however I can say Supplies. Area.
of concerned business every tradesperson in Council staff had Deputy mayor Dennis
• Four Bunnings
owners who thought the South Burnett that recommended the Palmer acknowledged
stores sold
the development I speak to keep asking proposed store be that staff had prepared
in lease-back
arrangement would spell doom for me the same questions: refused development the instrument for
smaller traders. But in are they coming and consent, citing a num- refusal in accordance
• Roy Morgan approving the applica- when are they going to ber of shortcomings with adopted council
pegs Bunnings tion, planning port- be here? in the application put policy and guidelines,
ahead of HTH in folio councillor Terry The advantage of this forward by Colin Blake. however felt this could
quarterly survey Fleischfresser said a business coming to However councillors be varied in particular
of customer Bunnings store would town far outweighs the disagreed. circumstances.
satisfaction complement the retail negatives. continues next page
hnn.bzbig box
update
Bunnings’ latest stores outside metro areas
In recent months, 18,000sqm. The big box https://goo.gl/gMp- total store size ofof community groups
Bunnings has official- retailer said the project mrQ 15,000sqm. already, working with
ly opened stores in represents more than https://goo.gl/YP-
Goodstart Early Learn-
Windsor Gardens (SA), $50 million worth of Bonnyrigg 4kAM ing Centre to extend
Toowoomba North investment, and is the centre’s outdoor en-
(QLD), Bellambi (NSW), expected to inject $4.7 The new Bonnyrigg Dalby vironment with a sen-
Bonnyrigg (NSW) and million worth of wages store replaces the sory garden, as well as
Dalby (QLD). from 170 jobs into the previous warehouse Bunnings Dalby store helping to revamp the
local economy in the located next door manager, Jodie Ianna, Dalby Diehards Foot-
Windsor Gardens first year of operation. and was opened by is joined by over 25 Dal- ball Club’s 100-year-old
https://goo.gl/3P- Parramatta Eels rugby by locals who are now grandstand.
The new Bunnings wTHm league legend Peter official team members Bunnings Dalby is
$47 million outlet at Sterling. He was joined of the new $12 million, located at the corner of
Windsor Gardens will Bellambi by Bunnings Group smaller-format store. the Warrego Highway
be one of the largest CEO Michael Schnei- Ms Ianna has worked and Eton Street in
in South Australia. Former Australian der, complex manager at Bunnings for 12 Dalby (QLD).
Complex manager international cricket- Andrew Shalala and years. She told The https://goo.gl/3LgSYN
Simon Ahladas heads er, Brett Lee officially staff. Chronicle:
the team at the new opened the new Bun- The new Bunnings Team members have
store at 432 North East nings Bellambi Ware- has an approximate supported a number
13 Road and spread over
13,000sqm. He said:
house. The store pre-
sented an opportunity
Bunnings Cootamundra (cont.)
We have been a part for a career change for
of the local community team member Bianka
for over 15 years. Hoswell who grew
It’s the second up in Bellambi and
Bunnings store in worked as a nurse in
the northeast, with aged care for eight
another established at years.
Modbury. But she is now work-
https://goo.gl/EceC9t ing in a supervisory
role in the leisure and
Toowoomba landscape section of
North the store. She told the
Illawarra Mercury:
The location of the proposed Cootamundra store is the corner of Wallendoon and Hovell
Australian rugby Their approach is
Streets
league great Shane beautiful. They have
Webcke helped to this whole family feel He said: and was the only councillor not to
launch the Toowoom- about the business. We have been elected to look after vote for Cr Palmer’s motion. “I have
ba North Bunnings There is plenty of inno- the future of our towns and we no issue with the hardware store, I
store on the site of the vation and team devel- must be proactive… think it would be good competition
old foundry. The open- opment so Bunnings Cr Palmer said a newly developed for Mitre 10,” he said, but stated
ing marks the 42nd was very appealing to side would be better than the cur- the incomplete application should
Bunnings store to open me. rent building. He also argued the not have even been discussed by
in Queensland and the And she hopes her car parking code could be altered councillors.
260th warehouse to story about changing subject to Traffic Committee ap- Mayor Abb McAlister said that
open around Australia, careers will encourage proval. He added: council must always be on the front
New Zealand and the others. She said: This council needs to be a ‘can-do’ foot when it comes to development
UK. I’m really happy to facilitator, rather than a ‘can’t do’ before declaring his support for the
Toowoomba’s second have a second family authority. hardware store.
Bunnings Warehouse here with the team that Doug Phillips held concerns the https://goo.gl/sTiYNR
is one-and-a-half times I am working with. I incomplete application may lead https://goo.gl/P64f5d
the size of the first at am incredibly grateful. to legal ramifications for council
hnn.bzbig box
update
Bricks and mortar builds for Bunnings
In the next few Bunnings in Port
months and going into Stephens
2018, new Bunnings
Warehouses will open The large, blue
in Devonport (TAS), former Masters Home
Heatherbrae (NSW) Improvement store at
and Rockhampton Heatherbrae (NSW)
(QLD). has begun turning
green. The new Bun-
Devonport store nings store will span
more than 12,000sqm.
Bunnings general Mr Marks said the new
manager – property, store was expected
Andrew Marks, told to open in time for
The Advocate the new Christmas.
Devonport store is According to real Project management company, Willow Frank is overseeing the Bunnings Devonport store
expected to be open estate firm, Cushman construction
sometime in December. & Wakefield, who sold large format retail Masters site. ting works will occur
Construction work is the three NSW-based development with four This location, where in the coming months
almost complete at the stores for Home Con- retail tenancies. Bunnings signage has and the new store will
14 site. He said: sortium – the pur- https://goo.gl/R2awd1 recently been installed, span over 13,000sqm.
Recruitment has been chaser of all 61 of the will see the store near- The Bunnings trade
completed with more Masters sites across Rockhampton by other stores such as centre will remain in
than 80 residents… Australia as well as 21 opening date Freddy’s Fishing and its current location.
Bunnings Devonport development sites – Outdoors, Petstock and https://goo.gl/
will cover more than the Heatherbrae Mas- Bunnings’ new Autobarn. Mr Marks QFKY6D
8,000sqm…The devel- ters site sold for $12.3 location at the former said:
opment represents an million. The Heath- Masters Rockhampton We can confirm we
investment of over $19 erbrae sale included site will be open to have reached an agree-
million. a total land holding the public mid-2018. It ment with the landlord
The Bunnings Devon- of 45,730sqm, includ- received approval at to convert the former
port store is where the ing two facilities: a the start of the year to Masters Rockhampton
K&D Warehouse was 13,153sqm purpose built move from its current site into a new Bun-
located. hardware retail ware- location on Yaamba nings Warehouse. Con-
https://goo.gl/j8WgtZ house and a 4,029sqm Road to the vacant version and reformat-
Woolworths makes final exit from Masters
Woolworths has tium for a headline sale federal court proceed- were about $1.8 billion. https://goo.gl/ki6HRa
finally extricated itself price of $525 million. ings, allowing the local The sale to Home
from its failed Masters Home Consortium retail giant to make the Consortium includes
hardware venture by plans to convert the final step in selling the 40 Masters freehold
completing the sale of Masters stores into former Masters stores. trading
its store sites. large format retail cen- Lowe’s Companies sites, 21
The supermarket gi- tres featuring outlets recorded in its results Masters
ant said it has complet- including Spotlight, for Q2 2017 an addi- freehold
ed the sale of Hydrox Anaconda, Chemist tional USD96 million devel-
Holdings – the joint Warehouse, JB Hi-Fi gain from the sale of opment
venture company it set and The Good Guys. Hydrox Holdings. sites
up with US firm Lowe’s Lowe’s handed over Woolworths previ- and 21
to run Masters – to the its 33.3% stake in ously said the capital Masters
privately owned Home Hydrox to Woolworths losses associated with leasehold
Investment Consor- in August, in line with the sale of Hydrox sites.
hnn.bzbig box
update
Bunnings Kawana open Bunnings Fyshwick site may
to customers become train station
News that Bunnings
could take up the
former Masters site
at Majura Park (ACT)
may be the first move
that could see the
relocation of Canberra
Railway Station to
Fyshwick. Bunnings Fyshwick
Bunnings staff at of the Fyshwick site, respond to questions
the Fyshwick store on but it was likely that about whether it had
Newcastle Street have it would continue to been involved in any
Store manager Emily Sweet of the new Bun- been aware all year trade “in one form or negotiations with the
nings store on Kawana Way in Warana (QLD) that they would be another”. Acting state ACT Government.
said the team has been excited to welcome the transferring to Majura operations manager, Land between the
local community to the store and celebrate with Park in 2018. One staff Robyn Hudson, said in rail line and Bunnings
them at the grand opening event. member told the Riot a statement: is vacant and being
However Kawana Hardware and Garden Act the ACT Govern- Team members will used as a makeshift car
Centre owner Ian Witten expects his business ment and Bunnings either relocate to the park. Combined with
15 will take a hit with the launch of the Bunnings had been in negotia- new Canberra Airport the Bunnings site, it
outlet. tions for some time site or remain at the could allow for a rail
Mr Witten moved to the Sunshine Coast from with the aim of the current Fyshwick store. and bus interchange,
western New South Wales in 1998 to take over Government acquiring We will continue to en- car park and integrated
the store. One of his sons had bad asthma so he the site to develop a sure our team members mixed use develop-
gave up farming for an entirely different career new railway station. and the community are ment, as recommended
where harsh winter weather was not a problem. Bunnings said in a kept up to date with in 2009 by the Railway
In the two decades since then, he has seen a statement that a final any progress on our Master Plan for the
number of independent hardware stores close decision had not been plans. ACT.
down in the Kawana Waters, Buderim, Caloun- made on the future But Bunnings did not https://goo.gl/TEq8Di
dra and Maroochydore areas. His enterprise has
survived but he expected sales would be affect-
ed by a new competitor. He told the Sunshine
Four more warehouse stores sold
Coast Daily: A portfolio of four tors said that all four long-term strategy of
When Caloundra (Bunnings) opened, we really newly-built Bunnings freehold assets are diversifying its inves-
felt it and that lasted six to eight months, then it hardware stores have located in metropoli- tor base and recycling
went back to normal. I think we will see a fall in been sold to CBRE tan areas on arterial capital on lease terms
sales through the Christmas period. Global Investors in a roads. Factors expect- that provide it oper-
He said Bunnings had excellent marketing. transaction worth $180 ed to drive growth in ational flexibility. He
I don’t know how we compete with it. million with yields in these markets include told Fairfax Media:
He said a focus on customer service and pro- the 5% range. household disposable We are pleased to
viding products outside of the Bunnings range The hardware chain income, renovation have completed anoth-
were among his tactics. has offloaded stores activity, housing churn, er successful sale at a
We try and stock what they don’t. in Windsor Gardens value and formation, yield that is reflective
Mr Witten said he was getting some benefit (SA), the Auckland weather, lifestyle and of the market and on
from the commercial and residential expansion suburb of New Lynn demographic trends, lease terms that take
at Birtinya and Bokarina. in New Zealand and government activity into account our opera-
We supply the bricklayers and landscapers but the Sydney suburbs of and technology. tional objectives.
a lot of it is corporate purchases. When people Caringbah and Bonny- Bunnings’ general https://goo.gl/EjeURS
need maintenance on their houses later on, that rigg. All four sold with manager – property, https://goo.gl/fh9U3y
is where we come along. 12-year leases in place Andrew Marks said
https://goo.gl/13FC97 to Bunnings. the sale was consis-
https://goo.gl/sFo1k1 CBRE Global Inves- tent with the group’s
hnn.bzbig box
update
Bunnings beats HTH on
customer satisfaction
Bunnings has replaced last three months. Michele
Home Timber & Hardware Levine, CEO, Roy Morgan
(HTH) to be Australia’s Research, said:
leading hardware store in Bunnings is undoubtedly
September 2017, according Australia’s best known
to the latest rankings from hardware store…Today’s
Roy Morgan Research. It customer satisfaction
scored a customer satisfac- results show Bunnings’
tion rating of 89.0%, up 0.1% impressive reputation
from a year ago. is built on a high rate of
HTH came in second with customer satisfaction – now
a customer satisfaction rat- at a market leading 89% in
ing of 88.6%, declining 0.4% September…
points over the course of HTH has performed con-
the year, but enough to beat sistently well over the past
out Mitre 10 in third with few years winning the an-
a customer satisfaction nual Roy Morgan Hardware
rating of 86.9%, down 3%. Store Customer Satisfaction
16 Rounding out the hard- Award in four out of the
ware store “Big 4” is True last five years (2012, 2013,
Value Hardware with a cus- 2015 and 2016) although the
tomer satisfaction rating 2017 Annual Award looks set
of 76.3%, down slightly on a to go down to the wire with
year ago. Bunnings aiming for its first
According to the Roy victory in the category since
Morgan, approximately 13.1 2011.
million Australians visited https://goo.gl/T5yFrZ
a hardware store during the
Roy Morgan Hardware Store Customer Satisfaction September 2017
Source: Roy Morgan Single Source Australia, October 2016 – Septem-
ber 2017. n=14,910. Base: Australians 14+.
hnn.bzindie update
Langs store opens
in Caloundra
in this ium window frame
update: manufacturing.
A decade of planning
•start has culminated in the
text
Langs Buidling
Supplies has centre’s opening, with
opened a store in the Caloundra-based
Caloundra store doing battle
with southern rival
• Total Tools is Ipswich. But for Langs
seeking to open general manager David
a new outlet in Wuiske, the move here
Tamworth was confident. He said:
17 We had two choic-
es, a site at Ipswich
A $20 million drive- bulk building supplies the investment shown and here, we did our
through trade store and on-site manufac- by companies such research and thought
was unveiled recently turing of trusses and as Langs, along with there was a lot of
on the Sunshine Coast wall frames. the growth existing in growth potential here.
(QLD). Langs Building Sunshine Coast our region, that helps From the coast we can
Supplies has opened Mayor Mark Jamieson to support positive easily service the north
its second store in the opened the store. He business confidence ... side of Brisbane and
state and is expected said: Langs plan to double right up which made
to inject an annual It will support local their existing staff us very confident. The
economic contribution building and construc- numbers in the next sheer scale of the place
of $193 million. Along tion industry as well 12-18 months, followed is exciting. Bob Lang
with a trade store, it as providing great by an additional 50 hasn’t built this busi-
will provide the local employment oppor- jobs when the company ness by halves.
community with a tunities for locals. It’s starts on-site alumin- goo.gl/So4EQs
Trade store planned for Tamworth
Total Tools has heed Street. population. He nings. He said: December”, with
submitted a devel- If the Tamworth told the Northern In fact ..., it pro- at least six staff
opment applica- development is Daily Leader: vides the focus for working at any
tion to Tamworth given the green Regional Austra- a lot of customers one time.
Regional Council, light, it will be lia is no different to come to us. It The develop-
for a $300,000 the company’s to the high-densi- suits our footprint ment application
development in furthest inland ty areas, it creates if you like. It’s all indicates a Total
Taminda (NSW), store in NSW. a market for us. about providing Tools store can
on the corner of Total Tools Mr Lazzaro said competition and serve up to 100
Lockheed and project manager Total Tools had being able to pro- customers a day,
Jewry Street. The Mike Lazzaro no problem being mote the brand. with an average
proposed site is said Tamworth located across If approved, Mr of 55 customers
located opposite “ticked all the box- the road from Lazzaro said the a day.
Bunnings Tam- es” in regards to home-improve- store would “be https://goo.gl/
worth on Lock- demographics and ment giant Bun- looking to open in tuYtfX
hnn.bzJohn Ioakim
independent with a strong brand and no forced promotional stock eating up
The Lakes H Hardware - LAKES ENTRANCE, VIC floor space and our bottom dollar.
How did you come into the hardware business?
I was the store manager of this store under the previous owners when it was How is business today?
a bannered store. In 2016 the owners called me looking to sell. My wife, We opened in July 2016 and 12 months on business is good. We’ve had
Leanne and I spent many a night around the kitchen table running figures growth and we have strong customer base. Our trade business makes up
and swapping ideas for the store. We decided to go for it but we wanted to 75% of the business, I look after that and Leanne is the face of our retail
be truly independent and in control of our stock. side. It’s come along way from our first official order that BGC sent to our
house and I borrowed a trailer to be able to deliver it to site.
What made you decide on branding your new store H Hardware?
We had a few recommendations to join the HBT Buying Group and when that What would you say to someone considering transitioning
stacked up we had a chat with Steve Fatileh who showed us the branding to H Hardware?
for H Hardware. It looked great, the colours are eye catching and it really If you want to have control of your business, your stock, your promotions
stands out. The clincher for us was that the store was ours, we could be and a stand out brand,then H Hardware is a no brainer.
For more information and
membership application call
1300 305 719big box update
supplier update
Husqvarna products
star at US Equip. Expo
The annual Green In-
in this dustry and Equipment
update: Expo (GIE+EXPO) in
Louisville, Kentucky
•start positions itself as the
text from
Automower
Husqvarna X-line largest trade show for
launches in 2018 the outdoor power
equipment, lawn and
• Snap-on will garden equipment,
appeal award light construction and
patent damages landscape industries.
to Milwaukee Husqvarna introduced
Tool several new products
19 • Ryobi generators at the recent 2017
get electronic event. The Husqvarna Automower X-line will be introduced in 2018
fuel injection A new model for its
• Assa Abloy buys Automower robotic The app works for er chain designed, announced a line of
smartlock maker mower series was Android and iOS de- developed and man- commercial zero-turn
August presented, as well as vices and lets owners ufactured from the mower blades featur-
additional products for receive their Auto- materials to final ing Fisher Barton’s
• GearWrench gets the company’s lineup mower’s current status product in its produc- laser edge cutting
a new brand of battery-powered and change settings tion facility in Sweden. technology. Husqvar-
identity range and new chain- remotely. It also trans- The carefully engi- na says these blades
• Irish workwear saws and chainsaw mits the Automower’s neered thickness of the feature long-lasting
clothing compa- accessories for profes- precise GPS-tracked chrome layer ensures sharpness, reducing
ny Portwest has sional landowners and location in the event of a lasting sharpness downtime for lawn
acquired Mel- farmers. a theft. and a high capacity, care professionals and
bourne, Australia In 2018, the Automow- Husqvarna said it will and the chain requires increasing cut quality
based company er 310 can serve 0.25 give its 400 e-series less power from the and fuel efficiency.
• Selleys is at- acres and slopes up to saws a full upgrade in saw than the standard With its new BLi100,
tempting to build 22 degrees. This model 2018. The 435e, 440e, cutting systems. BLi200, BLi300 batter-
its business in also features “Connect 445e, 450e and 450e Available with a 48- ies, Husqvarna intro-
the UK from Home”, its new Rancher chainsaws or 54-inch commercial duced a new line of
connected Bluetooth will all have improved ClearCut deck, Husq- lithium-ion technology
• Brickworks buys functionality. start-ability through varna says the V548 that will replace the
Urbanstone
The Automower Smart Start for low and V554 stand-on current models. The
X-line will be intro- rpm ignition, a slimmer mowers provide excel- company says these of-
duced next year, which saw body and flip-up lent grass cutting and fer faster charge times
Husqvarna says makes tank cups, snap-lock management. Its latest (50-80 minutes), higher
the Automower Con- cylinder covers and zero-turn mower series capacities and 100Wh,
nect app standard for quick release air-filters. consists of 11 products, 200Wh and 300Wh
those models. This app Additionally, Husq- four Z500 models and respectively.
allows owners to con- varna introduced new seven Z500X models, https://goo.gl/
trol the mower from saw accessories. The ranging from the Z548 UzxAFC
their smartphone no X-Cut SP33G is the to the Z572X.
matter where they are. company’s first-ev- The company also
hnn.bzsupplier
update
Snap-on to appeal patent suit with Milwaukee Tool
Tool maker Snap-on waukee Tool said: that Milwaukee
said it will appeal a US The introduction of Tool’s claims were
federal court’s verdict Lithium-ion technolo- invalid because
that awarded Milwau- gy to the professional Canadian battery
kee Electric Tool nearly power-tool industry maker E-One
USD28 million in a was groundbreak- Moli Energy had
patent lawsuit. ing and resulted in actually developed
The federal lawsuit, multiple patents for the technology and
filed three years ago our company that we brought it to Mil-
in the Eastern District continue to aggressive- waukee Tool. Moli
of Wisconsin, involves ly defend. [The] jury eventually gave up
three Milwaukee Tool verdict by the federal its patent owner-
patents for battery court affirms Milwau- ship rights in 2006
packs used with cord- kee Tool’s leadership in and established a
less power tools. new-to-world technolo- license agreement
The Journal Sentinel gy in cordless tools for with Milwaukee One of Milwaukee’s original Li-ion tools from circa 2006
reports that Rick Secor, the trades. Tool.
director of corporate Milwaukee Tool “Snap-on does not infringe on Milwaukee ly based on the amount
communications at asserted in its lawsuit believe, that there was Tool’s patents. It deter- of Snap-on’s infringing
Snap-on said the that “no other tech- anything inventive mined the award was a sales.
20 company strongly nology could offer the about using a Li-ion “reasonable royalty” af- He noted that the
disagrees with the combination of high cell in a high-powered ter determining Snap- jury deemed the
jury’s verdict and will power, light weight cordless tool battery on had likely willfully infringement will-
“vigorously appeal.” and compact size made pack. But assuming… violated elements of ful. That finding, Mr
In the lawsuit, Mil- possible by Milwaukee there is an invention three different Milwau- Hansen said, allows
waukee Tool said the Tool’s inventions.” here, Moli conceived of kee Tool patents. the court to increase
lithium-ion battery The lawsuit contends it, and not (Milwaukee Milwaukee Tool’s the damages Snap-on
packs it invented Snap-on infringed Tool),” Snap-on attor- victory in its law- could have to pay by
greatly changed the on Milwaukee Tool’s neys wrote in seeking a suit alleging patent up to three times the
industry after being patents when the com- summary judgment. infringement was not amount of the jury’s
introduced in 2005. The pany made lithium-ion The jury hearing the surprising, said Scott award.
technology replaced battery packs for Snap- case concluded that it Hansen, one of the law- https://goo.gl/tDC-
packs that used nick- on tools. But Snap-on was more likely than yers who represented DLU
el-cadmium batteries. argued in court filings not that Snap-on’s lith- the company. https://goo.gl/ZXoCJ6
A spokesman for Mil- leading up to the trial ium-ion battery packs The amount was fair-
TTI portable generators with EFI technology
Techtronic Industries ing the performance electronic engine amount of CO pro- model RY907000FI
Power Equipment enhancing advantages management system duced. This new engine generator in Septem-
(TTI) said it is bringing of EFI technology to its greatly reduces Carbon technology being ber 2017.
closed-loop electronic product lineup. Monoxide (CO) exhaust applied to portable https://goo.gl/KE13sR
fuel injection (EFI) The new EFI engine emissions emitted generators has the
technology to its Ryobi option is featured on from the engine. Lee potential
branded line of porta- the RY907000FI model Sowell, president of to save
ble generators. generator and provides TTI Power Equipment lives and
EFI technology has up to 20% greater fuel Outdoor Products prevent
been used extensively savings, compared to division, said: countless
in the automotive and a standard carburet- The most effective injuries…
houseboat industries ted engine while also way to mitigate the TTI
as an environmentally improving starting potential for CO related began
responsible advance- and performance at all injury is to first address produc-
ment in engine tech- elevations. Most sig- the hazard at the tion of
nology. TTI is introduc- nificantly, the on-board source by lowering the the Ryobi
hnn.bzsupplier
update
Assa Abloy buys smart lock maker August
Swedish lock con- experiences. It is a
glomerate, Assa Abloy strong complement to
said it has signed an our current focus.
agreement to acquire In addition, Mr
August Home, a Molokotos said August
business that makes Home is very synergis-
smart locks and smart tic with Assa Abloy’s
home access products Yale brand.
and services. Based in August’s focus is pri-
San Francisco, Au- marily the DIY channel
gust Home primarily with retrofit locks that
focuses on developing offer an exceptional
solutions for the DIY user and software
market. experience. Through into recent partner- integrated into Assa it loses its indepen-
According to Thana- the Yale brand, Assa ships with Amazon, Abloy, Mr Molokotos dence as a more nimble
sis Molokotos, execu- Abloy’s focus is on Apple, Google, Nest said that they will startup. The acquisi-
tive vice president of full replacement locks and Airbnb. “jointly evaluate” their tion also highlights the
Assa Abloy and head of that are connected This has helped to opportunities once challenges consumer
the Americas divi- and served by the make August Home, the acquisition closes, hardware startups
sion, the acquisition professionally installed which has seen lock which is expected to face creating big-hit
of August Home will channel. sales increase by 300% occur during Q4. products that result
21 strengthen the compa- Founded by Jason year-over-year with We believe keeping in big enough sales to
ny’s residential prod- Johnson and Yves more than 260 million the August culture and help them compete
uct portfolio through Behar, August Home lock operations and leadership intact after with much larger busi-
the addition of smart has developed three 500,000 users. acquisition is vital for nesses.
locks, video doorbells generations of smart August raised USD25 success for all involved The acquisition is
and solutions for home door locks and two million in July to help so we are excited Jason subject to regulatory
delivery. He told Secu- generations of video fund its recent launch Johnson will remain approval and custom-
rity Info Watch: doorbells, placing of new, cheaper August and focus on imple- ary closing conditions.
August is an entre- them among the Smart Lock Pro locks menting the vision. Financial terms of the
preneurial company leaders in the smart intended to make the Now in the arms agreement were not
that is innovating in home industry when high-tech gadgets more of a bigger company, disclosed.
the traditional lock it comes to technology, appealing to main- August will get more goo.gl/sEzHwt
space by enhancing partnerships and retail stream consumers. direct help to sell its https://goo.gl/tt3GCW
access control through sales. For example, the When asked how products to the masses,
software and service company has entered August Home will be the tradeoff being that
GearWrench unveils new brand identity
Apex Tools-owned The new Gearwrench sive new brand identity ratcheting combina- line. By the end of
GearWrench has a logo, “Forge Ahead” program to reflect that tion wrench. 2017, GearWrench said
rebranding campaign. communicates the progress. This new Looking forward, it plans to have 4,100
The company sees its brand’s approach visual identity will help the company plans to different products
new identity embody- toward forward-think- communicate the high continue expanding available for purchase.
ing the brand’s com- ing, according to the quality of our products, its redesigned product https://goo.gl/cBBEfL
mitment to excellence company. Ray Smith, our customer-focused
in manufacturing and vice-president – mar- culture, and our com-
innovation. The rollout keting, North Ameri- mitment to innovation.
involves every aspect can Hand Tools, said: The logo it replaces
of the GearWrench The GearWrench has represented the
brand, including its brand has grown re- brand since it appeared
logo, tagline, colour markably over the past in 1996 when Gear-
palette, typography, 20 years. We’ve under- Wrench introduced the
and product design. taken this comprehen- first professional grade
hnn.bzsupplier
update
Irish workwear firm expands in Australia
Wesport, Ire- in Australia and New according Mr
land-based safety Zealand to between Birkill.
clothing and protective EUR20 million and Trading since
equipment maker Port- EUR25 million, which 1904, the com-
west has spent EUR10 will represent about pany is being
million buying another a tenth of its overall run by the third
Australian company to business. Brett Birkill, generation of
expand its presence in chief executive of the Hughes
this market. Prime Mover, told the family, led by
Portwest said that Irish Times: brothers Cathal,
due to a non-disclosure This acquisition now Harry and Owen
agreement, the name follows on from the Hughes. It has
of the Melbourne original acquisition 2,100 employees
business cannot be dis- six months ago. It and sells its
closed for the moment. catapults it to the next products in 110
Six months ago the stage of growth. countries. CEO Portwest has been growing at a rate of 30% a year and sells in 110
firm acquired Austra- Australia’s buoyant Harry Hughes countries
lian company Prime construction indus- said:
Mover Workwear in try made Portwest’s The company is more important part of signs and innovations
a deal worth EUR7.5 additional investment working to a 5-year future expansion. Our to drive this growth.
22 million. sensible, while pushing plan with a growth sights are firmly fixed https://goo.gl/ReyT8z
The second ac- further into this mar- rate of 30% per year. on our new markets of
quisition will more ket would “help spread Although all growth to US and Australia and
than double the Irish the load” of mitigat- date has been organic, we have an outstand-
company’s turnover ing risk from Brexit, acquisitions will play a ing pipeline of new de-
Selleys sees UK opportunities
Selleys is working standing how cus- really needed to use took a bold new iconog- igation. This straight-
with Anthem World- tomers navigate this design carefully to both raphy-led approach to forward approach still
wide (Australia) to help category was the focus appeal to the new Brit- differentiate from com- pays homage to Selleys’
break into DIY market of Selleys’ launch. Ami ish consumer, as well petitors who mostly led no-fuss Aussie persona,
in the UK with the Heath, account direc- as respect 75 years of with technology cues. but allowed the brand
latest revamp of its tor, Anthem Worldwide Selleys’ proud heritage. Paired with a strate- to also unify the range
brand and packaging, (Australia) told Build. Creative director, gic use of colour, the and complement it
tailoring it towards the com.au: Marcel Wijnen added: new range significantly with a newly refreshed
British consumer. Entering such a cat- Addressing an age-old simplifies the packag- Selleys brandmark.
While Selleys is egory as an unknown category problem of ing hierarchy, greatly https://goo.gl/D45jfD
relatively unknown in brand provides both intolerable clutter, we improving range nav-
UK and competing in great challenges and
a category with many opportunities. While
established brands, brand awareness and
the extreme Austra- trust will always take
lian weather condi- time to gain traction,
tions provides strong opportunities such as
credentials for Austra- this are rare – to be
lian brands claiming able to reassess norms
superior strength and and provide customers
performance. Howev- with a fresh approach
er, with up to 40% of to old category
consumers walking problems. Targeting
away from shelves both unconfident and
empty-handed, under- confident DIY-ers, we
hnn.bzsupplier
update
Brickworks grows
masonry business
West Australian paving and erate an after-tax profit of $3.9
masonry company, Urbanstone million for Schaffer, one of WA’s
has been sold to Brickworks oldest listed companies, having
for $13.5 million. Family-owned joined the stock market as Calsil
Schaffer Corporation has in 1963.
divested the last of its building Schaffer Corp made a net prof-
products assets with the sale of it of $5.9 million last financial
Urbanstone to Brickworks. year on revenue of $215 million,
Subscribe
The deal does not include including a break-even result
Urbanstone’s land and buildings from its building materials divi-
in WA, which will be occupied by sion on sales of $38 million.
Brickworks under a long-term
lease with Schaffer Corp.
The bulk of its revenue is
derived from its automotive Don’t miss out!
Schaffer executive chairman
John Schaffer said the sale
leather business, which sup-
plies manufacturers including We’ll email you the
would allow the group to focus
on its automotive leather busi-
Nissan, Mercedes and Audi from
plants in Australia, Slovakia and
summary and link
ness, its Delta precast division China.
every fortnight
23 and its property investments. Brickworks’ portfolio includes
FREE
Brickworks said Urbanstone Australia’s largest bricks pro-
was a logical bolt-on acquisi- ducer Austral Bricks, Austral
tion for its masonry business, Masonry, Bristile Roofing,
providing additional scale and Austral Precast and Auswest
diversifying its product range Timbers.
and geographic exposure. https://goo.gl/wZcpyD
The sale is expected to gen- Click to subscribe
or go to:
http://goo.gl/lHPt57
hnn.bz
HI
NEWSretail update
Mitre 10 NZ posts gain
in full-year profit
Mitre 10 New Zea-
in this land posted a 38%
update: gain in full-year profit
after reining in some
•start expenses including
Mitretext
10 New
Zealand has seen wages, helping to offset
its profit increase some margin pressure
by NZD1.2 on seasonal products.
million Profit was NZD4.4
million in the 12
• A Tradelink store months ended June 30
has opened in from NZD3.2 million a
Bundamba, year earlier, the Auck-
Queensland
24 land-based company
said in a statement.
Revenue from the
sale of goods rose to
NZD818 million from
NZD767 million. drove growth over the segments because earthquake-related
The hardware retail past year. they can easily buy close of the Kaikoura
co-operative, whose Our members are con- online, and it offers the outlet. The aggregate
shares are held by its tinually investing in freedom to get inspi- of Mitre 10 store sales
store-owning mem- their stores, upgrading, ration and advice and rose to NZD1.36 billion
bers, supplies goods expanding and finding compare products and in the latest year, from
and services to the 81 new ways to deliver the prices, 24/7. NZD1.24 billion.
outlets in the group. best in-store experience Having done their Cost of sales rose
Chief executive Neil for our customers. homework online, our to NZD747 million in
Cowie said: Complementing this customers then have the latest year from
We’re cautiously in-store growth is our the option to visit their NZD692 million. Mar-
optimistic. There’s been commitment to create local Mitre 10 store and gins were squeezed
some softening around a complete online expe- take advantage of our after a mild winter last
the edges through the rience for our custom- showrooms, range, year, which saw the
2017 election but people ers as well… product knowledge chain forced to mark
will still be investing in Reflecting this, Mitre and advice. Our recent down heating prod-
their homes and there 10’s online sales grew kitchen showroom ucts. This year, Mitre 10
will still be homes be- 48% compared to last rollout helped drive has faced a wet spring
ing built. If you look at year, and the company a strong increase in season. Mr Cowie said:
construction, the new added another 7,000 kitchen sales, com- It’s still early days so
coalition is looking like SKUs (stock keeping pared to 2016, and we hopefully there’s a bit
investing in houses units) to its online are also rolling out our of pent-up demand.
and having a push on product range. new bathroom show- Seasonal categories
infrastructure. Mr Cowie said the rooms which we expect can be under pressure.
Mitre 10 Chairman omnichannel approach will perform well. But we’re picking that
Martin Dippie also said has strong appeal with Total stores fell by it’s still going to be a
a number of external customers in both one during the year
and internal factors its the retail and trade as a result of the continues next page
hnn.bzretail
update
continued from prev. page
Tradelink branch opens in Ipswich Mitre 10 NZ
strong year for our
business.
Mr Cowie said as
part of Mitre 10’s re-
structuring it moved
to paying member
rebates by install-
ment rather than
at the end of each
year, which helped
its members manage
their cash flow and
reduced the financing
“bulge” it previously
faced.
Unlike rivals such
at Fletcher Build-
Tradelink’s Wade Young, Dean Walton and manager Shannon Ryan from the Bundamba store ing’s Placemakers
A Tradelink store has ploys three local staff. to improve the homes manager Tim Brox- and ITM, the Mitre
opened in Bundamba Manager Shannon they already have, and ham said that the new 10 outlets rely less
(QLD), less than a kilo- Ryan from Springfield it’s always only going store was another on trade sales and
25 metre from the newly made the move from to improve the value of example of how the the split is currently
opened Bunnings. assistant manager at your property. business was identi- 70% retail and 30%
Next door is a paint the Underwood store There is a definite fying opportunities to trade, Mr Cowie said.
store, over the road to take the reins at the opportunity in this continue improving Mitre 10 stores are
is a bathroom design Bundamba location, area. We have three their service offering to currently rolling out
store, a carpet store, and loves the fact paint stores within 500 the trade community revamped bathroom
and just down the road that he is bringing metres of each other by positioning stores in departments having
is a Dulux paint store, his 15 years of expe- and the Bunnings up convenient locations. spruced up its kitch-
plus work is nearing rience to those who the road has helped… We know that plumb- ens departments in
completion on a new live and work in his it’s a hub for tradies ers prefer not to travel a move that led to a
Taubmans store. It is own town. He told the and people with the more than 15 minutes 30% increase in kitch-
now a highly concen- Queensland Times: renovation bug. from a job to get parts, en sales, he said.
trated area for those I think people are This is the seventh so no matter where our Our trade strategy
keen to do some home renovating more than store Tradelink has customers are working, is to not just to sell
renovations. ever. They are improv- opened across Austra- we want to make sure concrete and Pink
Tradelink has added ing what they have. lia this year, and plans that there is a Trade- Batts – we’re happy
to its 220 branch net- Instead of buying are under way for link branch nearby. to sell them (build-
work with this location brand new homes another 13. https://goo.gl/VZ- ers) the kitchens and
which currently em- people are choosing Tradelink’s general 6dUS bathrooms as well.
https://goo.gl/
sPu7XU
https://goo.gl/
ZNkzc4
hnn.bz26
DIGiTAL
167,000 43,000 72,000 75,000
Digital is like the Ocean: it connects to everything.
What makes HI News unique is that we know what our readers like. We know,
because we analyse the downloads every week.
That’s also why we can guarantee our advertisers the sort of audience they
need. We can put an exact number on engagement.
And, because our costs are so much lower, so are our ad prices. As low as just
20% of equivalent print prices.
Come on in. The surf’s fine.
Contact Betty Tanddo
HNN. The home improvement industry digital experts. betty@hnn.bz or
hnn.bz 0411 431 832tech/security
Natbuild builds case
against IHG
More details have emerged regarding the ac- R1 Alleged information recipient, involved in
cusations made by National Building Suppliers timber.
(Natbuild) against a number of hardware-relat- R2 Alleged information recipient, involved in
ed subsidiaries of Metcash, as well as some of hardware.
its individual employees. This information is R3 Alleged information recipient, involved in
provided by two sources: a judgement brought building supplies.
down on 26 October 2017, and by documents R4 Alleged information recipient, involved in
filed by Natbuild with the Federal Court of Aus- tools.
tralia, mainly an Amended Statement of Claim. M2 Alleged information recipient, manager.
The Federal Court has also set out a timetable M3 Senior manager at IHG.
of actions, including attempted resolution of In what follows, wherever the name of one of
• Two documents the dispute through arbitration, and dates for a these individuals appears in the original texts,
have emerged court hearing, should that remain necessary. HNN has substituted the code reference.
providing more
27 details about
HNN would like to remind our readers that
Natbuild’s allega-
the action brought by Natbuild remains before Judgement
the courts. In situations such as this, events are
tions as regards
often nuanced and complex, and HNN makes no In a Judgement provided by Justice O’Cal-
IHG
assertions as to the validity of any accusations laghan on 26 October 2017 the three main mat-
• In a Judgement whatsoever. However, as these events are affect- ters were considered: the addition of further
by Justice ing many of our readers — retailers, suppliers respondents, notably Metcash employees who
O’Callaghan, and buying groups — on a daily basis, we do feel had allegedly been given access to Natbuild doc-
Natbuild was compelled to provide as much information as uments; a request that these new respondents
granted leave to we can on this matter. provide affidavits describing their access (if
add additional We would further remind our readers that any) to the information; and orders that further
respondents, and we in Australia have a very good court system, forensic evidence be gathered and turned over
to access further particularly in the Federal Court, and that we to Natbuild.
forensic data can all have every confidence in their eventual
evidence
judgements. This has been further reinforced Adding respondents
• In a Revised by the Court’s swift action as regards this
Statement of matter. Adding further individuals as respondents
Claim, Natbuild was opposed by Senior Counsel representing
laid out further New respondents the Metcash employees (this relates to R1, R2, R3,
allegations as R4 and M2). The source of these names was said
regards IHG’s This case has grown to include additional to be affidavits provided by A1 and M3.
retrieval and respondents, and HNN wishes to continue to It was argued that these individuals should
distribution of not reference the actual names of the people not be joined as respondents. Quoting from the
material Natbuild involved. To facilitate the ongoing description, judgement documents:
alleges IHG em- we’ve adopted codes for each of the individual Senior counsel for the proposed individual
ployees accessed respondents. These are as follows: respondents submitted that, unlike [A1] (the sec-
A1 Access one: person alleged to have made ond respondent) and [M2] (whom it was agreed
initial access of Natbuild website. should be joined as a respondent), no allegation
M1 Manager one: person alleged to be closely is made against the proposed individual respon-
associated with A1 in access, and alleged to dents that they improperly or illegitimately
be involved in distribution of materials. This accessed the applicant’s database. He submitted
person is in a managerial relationship to A1. that the proposed individual respondents are
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