Bunnings managing director John Gillam has played down the threat of rival Woolworths' entry into the $36 billion hardware market, saying nothing he had seen from the Masters stores to date "keeps us awake at night".

Speaking in Perth for The West Australian's leadership series this morning, Mr Gillam, who has run the Wesfarmers-owned Bunnings chain since 2004, said the company was not complacent about the roll-out of the Masters stores and was watching the business closely.

However, the company also faced competition from Ikea and specialist retailers, and had managed to retain its market-leading position.