Big Appliance Retailers Pressure Brands To Buy Back Masters Stock
As Masters gets set to off load over $100 million worth of appliances several leading brands are believed to have approached management with a view to buying back stock following pressure from two of Australia’s biggest appliance retailers.
Currently Masters is set to discount out Dyson, Samsung, Electrolux, Hair, Panasonic and Fisher + Paykel appliances along with millions of dollars’ worth of house brand products.
Currently GA Australia who are the liquidation specialists employed by Masters to shift over $700 million worth of stock set to kick off the sale tomorrow with 30% discounts, however insiders are tipping that these discounts could rise to as much as 70% before the stores are set to close on December 11.
One major manufacturer has told ChannelNews that they have been approached by two major appliance retailers who are concerned that sales of appliances at their stores could be hit.
As a result, the concept of buying back stock and selling it through the likes of Harvey Norman, The Good Guys and Bing Lee has been put to the manufacturer.
“The entire store will be on sale,” said Kevin Olson, general manager of GA Australia.
Mr Olson said items that rarely went on special like power tools would move the fastest and the company would track items “scientifically, on a day-by-day basis” to decide when prices needed to be dropped as the closing date approached.
Geoff Dart, a hardware and building industry consultant, told Fairfax Media some big brands were trying to buy back their stock from Masters rather than have it flood the market at a discount.
“Some brands don’t want to be discounted and basically mortgage their future or damage their brand, particularly if they’re with other retail groups,” Mr Dart, of DGC Advisory said.
“So if they can buy it back, for maybe a little bit less than they sold it for, it’s a win for Woollies and a win for them.”
One of Masters’ major problems was it stocked products that no one wanted to buy and Mr Dart estimated Masters would not be able to shift about 15 to 20 per cent of stock before it closed.
“There’s obviously gun safes and things they stock that they never should have done in the first place. They’re going to have the ‘ugliest’ that will hang around and they’ll have to sell for scrap metal or send back to the US.”