WOOLWORTHS has extended its big box home improvement store business into Victoria with 10 stores generating 1300 jobs set to open over the next 12 months.
The fresh food people, who already have plans for stores in Queensland and one in Maitland, NSW, are trying their hand at the hardware business in direct competition with the dominant DIY retailer Bunnings.
Woolworths estimate the hardware business is worth $24 billion in Australia.
Nine of the 10 stores are in Greater Melbourne along with Wendouree near Ballarat.
The sites for the stores are Coolaroo, Burnside, Preston, Hawthorn East, Oakleigh South, South Morang, Mornington, Wendouree, Knoxfield, and Carrum Downs.
One is already under construction in Braybrook and the first one is expected to open in the early part of the second half of 2011.
Victorian Treasurer John Lenders said the new stores would be a great boost to Victoria's rising jobs tally and would help ensure Victoria remained the economic engine room of the nation.
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"Woolworth's investment in Victoria is a strong vote of confidence in our economy," Mr Lenders said in a statement.
"This investment demonstrates that while much of the rest of the world is still battling the economic aftershocks of the Global Financial Crisis, Victoria's economy is growing and we are creating jobs."
He said construction was likely to start in the coming weeks with the stores scheduled to open in the second half of next year.
Woolworths chief executive Michael Luscombe said the approval from the Brumby government reflected a strong commitment to growing jobs, infrastructure investment and consumer choice in Victoria.
Woolworths new business is a joint venture with American group Lowes which runs hardware stores throughout North America.
The chief executive of the new business is a Lowes former senior executive Don Stallings.
A Woolworths spokeswoman said Victoria had a lot of potential and the Victorian government came forward with the opportunity to look at the 10 sites as a block in a fast-tracking process.
"We're certainly keen to bring something new to the Australian market and to take on a sector that has had only one major player for some time now," she said.
"We think the market is really ripe for competition and it will be good for consumers."
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