Woolworths, Australia’s biggest retailer, has set up a joint venture with Lowe’s of the US to win a slice of Australia’s A$24bn ($20bn) home improvement market.

The pair have set a target of securing more than 150 large-format store sites over the next five years in a direct challenge to the market dominance of Bunnings, the home improvement chain owned by Australian conglomerate Wesfarmers, and the country’s other leading chain, Mitre 10.