Growth, particularly in new markets and locations, attracts risk. Understanding your markets, customers and strategy is key. Wesfarmers' move into the hardware market in the UK is no doubt a highly considered move, but as Woolworths' experiment with Masters in Australia has proven, significant financial impacts can accrue from the wrong decision. Time will tell whether "Bunnings UK" is a winning move for Wesfarmers.
Hardware insiders are concerned the turnaround of Homebase will be costly and require significant investment to build the network and market the Bunnings brand in the UK, a market dominated by Kingfisher's hardware behemoth B&Q.