By Patrick Avenell

Matthew Robertson has replaced Nathan Cary as the Masters merchandise manager – showroom, Current.com.au can today confirm.

An email sent by Cary to suppliers announcing this change has been seen by Current.com.au:

“I’m writing to advise you that I will be transitioning to a new role within the Danks business and that this week will be my last with the Masters business. Matthew Robertson will be my replacement as Merchandise Manager - Showroom. The Showroom division buyers remain unchanged.”

Nathan Cary is moving to a Melbourne-based role and will remain involved in Masters “in a consultative capacity”.

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Woolworths admits to massive Masters losses, says appliances going well
(Patrick Avenell, 18 July 2013)

Woolworths has today revealed that its Masters home improvement business, which sells cooking, laundry and other appliances, is haemorrhaging money, losing almost $160 million before interest and tax.

The big box retailer, however, refused to confirm changes to its buying for appliances, which have caused some consternation among suppliers.

In an update to the market today, specifically focusing on Woolworths’ exposure to the home improvement market, comprising both Masters and the trade-focused Danks retail brands, a Woolworths spokesperson blamed a range of factors, including Woolworths’ own ineptness, for these losses.

Total sales across Masters and Danks for FY2013 were $1.239 billion, up almost 50 per cent on the previous year. Danks accounted for $710 million (up 4 per cent) and Masters for $529 million (up 262 per cent).

The Danks chain actually made money during FY2013 — its earnings before interest and tax was $18 million — though this is considerably less than Woolworths forecasted $38 million.

Although Woolworths expected Masters to lose money during the past financial year, it underestimated the calamity: predicting a $119 million lose when the actual losses were $157.

“Actual losses were more than anticipated mainly due to overly optimistic sales targets budgets, relatively higher wage costs for new store openings and lower gross margins due to the sale mix,” said a Woolworths spokesperson.

Masters recently made changes to its appliance buying team, with sources telling Current.com.au that Matthew Robertson has taken over from Nathan Cary in its merchandising department. (This has now been confirmed; see above -Ed.)

Current.com.au sought to confirm these staffing changes with Woolworths, who chose to neither confirm nor deny this move.

Matthew Robertson’s LinkedIn profile says he is currently the “Merchandise Controller — Softgoods & Merchandise Support at Masters Home Improvement”.

Although Robertson is vastly experienced in retail, having worked for several years in various Woolworths roles, and before that at David Jones and Kmart, this move has led some suppliers to believe that Masters will soon be making major changes to its appliance strategy.

One concerned supplier told Current.com.au “that it sends a message that they aren’t necessarily serious about the appliances category and that they are trying to take an FMCG approach to it potentially, which we don’t believe will work”.

Woolworths specifically highlighted its performance in the appliance market, which would indicate that future changes to strategy would be counterintuitive.

“The customer response to Masters’ unique range and service offering has been very pleasing,” said the spokesperson. “We are particularly pleased with the kitchen flooring and whitegoods categories.”

Masters currently sells a broad range of name brand, trade brand and white label appliances at its 31 extant stores. Brands include Baumatic, Fisher & Paykel, Kelvinator, Philips and Bosch. Masters is a joint-venture between Woolworths and American hardware giants Lowe’s.