Bunnings to conquer DIY retail within 10 years
Bunnings is set to dominate the Australian market over the next 10 years, according to recent research from stock analysts.
A report compiled by Morningstar Equity Research, has forecast Bunnings to grab more market share and grow annual sales year-on-year, as Australia’s obsession with renovations and property maintenance thrives, according to a recent 9news.com.au report
Analysts concluded that Bunnings is on track to corner more than a quarter of the market, by analysing current and past sales, as well as competitors in the market, according to the report.
Analysts wrote that Bunnings is an exceptionally successful business and is expected to continually take market share and improve sales profitability, underpinning the wide moat on its parent company Wesfarmers.
“Australia’s home improvement retailing powerhouse, Bunnings, is by far the largest business in Wesfarmers’ existing portfolio today, and the most significant contributor to the conglomerate’s earnings growth over the next decade,” analysts said in the 9news.com.au report.
As a subsidiary of parent company Wesfarmers, Bunnings is a significant revenue driver. In 2019-20 it generated $15 billion in revenue, dwarfing sister companies in Wesfarmers’ portfolio such as Kmart ($9.2 billion revenue) and Officeworks ($2.8 billion).