Amazon launches new garden store to take on Bunnings

11/09/2019

Amazon is challenging Bunnings’ hold on the gardening and outdoor market after launching a new new online garden store selling pool supplies, outdoor furniture, barbecues and gardening tools.

To be launched next Tuesday, the new store is part of Amazon’s strategy to roll out new categories into the Australian market, including baby goods, pets, and pantry food and drinks, according to a recent Sydney Morning Herald report.

“Our garden store adds to the over 125 million products already available on Amazon Australia, underscored by great value and fast delivery,” Amazon Australia’s Country Manager, Rocco Braeuniger said.

Amazon’s foray into the outdoor and gardening space will see it butt heads with hardware giant Bunnings, which claims more than 20 per cent of the gardening supplies and hardware market, according to the report, with the gardening segment alone worth about $2.7 billion alone.

Drones will also be part of Amazon’s agenda, which plans to deliver packages to customers in 30 minutes or less in the coming months, a step toward a goal that has eluded the retailer for years.

Earlier this year Bunnings said its online store would be up-and-running nationally by Christmas after a successful trial in seven stores across Tasmania, according to the Sydney Morning Herald report..

Bunnings has opted for click-and-collect as its primary logistics method, acknowledging the difficulties of shipping bulkier items such as sheds, play equipment and barbecues. However, the retailer is planning to implement delivery options in the next 12 to 18 months.

However, shipping an entire barbecue or mower appears to be no issue for Amazon, which will deliver products directly to its customers, including Prime members who receive free shipping and a guaranteed two-business day delivery, according to the Sydney Morning Herald report.

In a statement, Bunnings managing director Mike Schneider said he welcomed Amazon’s competition but believed Bunnings in-store experience and expertise would win out.

“Having our team of experts in-store means we are also able to offer great service to run alongside our online transaction capability. We typically find that many of our online customers like to head into store to pick their items up,” Mr Schneider said.

Bunnings will still win in a number of key areas, however, with Amazon not selling things such as plants, plumbing and raw construction goods. Mr Rigby believes Amazon’s offering will be suited to the DIY “weekend warrior” types, where Bunnings will retain tradespeople, builders and people doing more significant renovations.

A survey of 1000 Australians conducted by Pureprofile for Amazon showed the majority would be willing to purchase garden and outdoor goods online, with Millennials showing more interest than other generations, according to the Sydney Morning Herald report.