Retail giant Woolworths has accused arch-rival Wesfarmers of a "dirty tricks campaign" after a consultant's report deriding Woolies' hardware strategy was circulated to investors.
The report, from management consultancy Madison Cross, claims the rollout of Woolworths' Master hardware chain is behind schedule and won't break even until 2020 -- five years after the company's own forecasts.
In a statement released yesterday, Woolworths described the report as "further evidence of a dirty tricks campaign being waged against the Masters Home Improvement business", highlighting links between Madison Cross and Wesfarmers' Bunnings.
"This report is incorrect in its assumptions and its projections, and can only be viewed as an attempt to damage the credibility of the Masters business strategy," the Woolworths statement read.
"Masters has created healthy competition, is winning market share and enjoying customer support. It appears this report is designed to generate negative commentary about Masters."
Woolworths said the report was misleading and the matter had been referred to the Australian Competition & Consumer Commission.
Madison Cross partner Geoff Dart said he had conducted work for Bunnings as recently as this year but said the company had no prior knowledge of his report and denied it was aimed at discrediting Woolworths.
"That's totally not true -- my views are my views, and there's been no communication with Bunnings about what I put out into the marketplace," he said.
Masters previously had accused Bunnings of coercing suppliers into not selling to it, as well as buying up sites to keep them out of Masters' hands.
Yesterday Bunnings issued its own statement, denying the Woolworths accusations.
"Madison Cross work widely in the retail sector, including in the past for Bunnings," it read. "Bunnings categorically rejects any suggestion of impropriety."
Source: http://www.theaustralian.com.au/business/companies/woolies-accuses-rival-of-dirty-tricks-campaign/story-fn91v9q3-1226472958074
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