Wesfarmers defends Bunnings.
Wesfarmers chief executive Richard Goyder has said the clear-out of Homebase’s board of directors was essential to turn the struggling British retailer into a world-class operator.
Goyder has also questioned why some of the Homebase senior executives, such as marketing director Chris McDonough, who only joined the business in December were hired by Home Retail Group when it was in sale discussions with Wesfarmers.
“My expectations are that we will get in there, take control of the business and give the people in the business the best opportunity to grow and prosper in that business. We did it in Coles, Kmart, and that requires people to be moved,” Goyder told The Australian.
More than $1 billion will be invested in Homebase to transform and revitalise its business, which will be rebranded as Bunnings. As part of the restructure, Wesfarmers ejected the senior managers of the business.
Goyder has argued a new management team at Homebase, led by former Bunnings chief operating officer Peter Davis and fellow Bunnings executive Rodney Boys, was necessary to turnaround its earnings performance.
“When you go and invest £340 million ($634 million) of shareholders’ money, you have to have a plan,” Goyder said.
“Part of that plan was that Peter Davis would go and run the business, and we were clear on that from day one. The other part of the plan was we would take a handful of people from Bunnings — which I think is a world-class business — into a business that frankly isn’t world-class at the moment, and that we want it to become world-class,” he added.