Fagg’s takes fight up to ‘big chains’

By John Van Klaveren
ICONIC Geelong hardware chain Fagg’s Mitre 10 has fortified itself against big-box chains Masters and Bunnings as they circle the city.
General manager Mark Edmonds said Fagg’s had entered into a joint venture with grocery wholesaler and Mitre 10 brand owner Metcash.
He revealed the arrangement as Masters confirmed to the Independent it was “working on” sites north and south of Geelong.
Industry figures believe Masters is eyeing a site on Bacchus Marsh Rd.
Bunnings has added a Torquay store and is relocating its Corio warehouse to Norlane while also operating at Waurn Ponds.
Mr Edmonds said Mitre 10 would now aggressively look for expansion opportunities in greenfield and bolt-on acquisitions.
“We’ll look for any opportunities in towns where there might be a Mitre 10 with the current owner seeking to sell.
“There may be independent businesses wanting to join Mitre 10 or there may be another business in Geelong we might like to acquire.”
Mr Edmonds said the Metcash deal would strengthen the Fagg’s brand.
“You’ve got to have the strength to stand up and be more aggressive. You have to have an independent, especially as Geelong becomes over-shopped.”
Metcash chief executive offier Andrew Reitzer said the joint venture would bolster Fagg’s as a major part of the Mitre 10 network.
“More importantly, it provides the platform for future growth opportunities.” Fagg’s co-director Barry Fagg said the business had always sought to improve and expand.
“We wish to continue this focus in this joint venture. Mitre 10’s involvement will assist us in this growth.
“Our family will retain a significant shareholding and active interest in the business.”
The three Fagg’s Mitre 10 stores would continue to trade as normal without changes to employment, customer or supplier arrangements.