Woolworths chief executive Michael Luscombe said in a statement “There is a real opportunity to increase the overall size of the sector and this significant new distribution and retail investment should be positive for both customers and the industry alike.”
“At the moment, the sector is dominated by one major big box player, so there is a real opportunity for increased competition in that part of the sector.”
It’s reported Woolworths will target 150 new store sites nationally. It’s first store is expected to open in late 2011. The US-based Lowe’s will own a third share of the new Australian home improvement business.
A copy of the Woolworths statement is available from this link: http://media.corporate-ir.net/media_files/irol/14/144044/asx/753818.pdf
Earlier this month, Woolworths announced it would enter the lucrative telecommunications industry by forming a new mobile offering with Optus.