Bunnings Still Booming

Bunnings Still Booming

Despite Wesfarmers boss Richard Goyder conceding that sales dropped in the Bunnings outlets closest to the Braybrook Masters store since the new competitor opened on September 1, Bunnings’ latest quarterly figures suggest that all’s well elsewhere.

Bunnings reported sales of $1.73 billion for the September quarter – an increase of 8.5%, or 6.3% once new store opening sales are excluded. The return is all the more impressive when Bureau of Statistics data showed home building in the June quarter dipping by 18.6% against the same period a year earlier.

“The range reset work we undertook more than 18 months ago has been the catalyst for increased customer value, simpler customer choices, optimisation of selling space and stronger supplier relationships,” said Bunnings managing director, John Gillam.

“The range reset and value focus work will have some impact on margins in the short term. However, we will continue to underpin significant longer term value creation. “Strong momentum across the business towards delivering customers the best offer has Bunnings well positioned for further sales growth.”

Bunnings said it opened three warehouses and two trade centres during the quarter, with further substantial investment in the property pipeline and existing sites. There are currently 13 stores under construction.