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‘Dilution’ of JV model cited as Placemakers loses market share

Placemakers, the country’s biggest trade merchant store network, has seen its JV ownership structure slip from 90% of stores to less than a third.

Change to JV model sees loss of market share at Placemakers.

Key points
  • What’s at stake: Fletcher Building has blamed the impact of a slow residential market for troubles at its distribution arm for an expected $75 million hit to its end-of-year earnings. Hardware and supply merchant Placemakers is at the heart of that business.
  • Background: Placemakers has operated under a joint venture partnership model for 35 years. Its corporate owner, Fletcher Building, says that structure remains a key lever to its success – but has diluted JV ownership to 30% of its 64 stores.
  • Main players: Fletcher Building, Placemakers, Tumu, Ralph Waters, James Peters, Ross Taylor, Commerce Commission, ITM, Satish Ranchod.

When Ralph Waters took the top job at Fletcher Building in 2001, it was during a transitional year for the company – its first following the dismantling of Fletcher Challenge.

The Queenslander proceeded to hive off several assets that first year, including its South American concrete business and

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Brent Melville Mon, 10 Jun 2024
Contact the Writer: bmelville@nbr.co.nz
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Key points
  • What’s at stake: Fletcher Building has blamed the impact of a slow residential market for troubles at its distribution arm for an expected $75 million hit to its end-of-year earnings. Hardware and supply merchant Placemakers is at the heart of that business.
  • Background: Placemakers has operated under a joint venture partnership model for 35 years. Its corporate owner, Fletcher Building, says that structure remains a key lever to its success – but has diluted JV ownership to 30% of its 64 stores.
  • Main players: Fletcher Building, Placemakers, Tumu, Ralph Waters, James Peters, Ross Taylor, Commerce Commission, ITM, Satish Ranchod.
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‘Dilution’ of JV model cited as Placemakers loses market share
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