Bunnings Reveals Huge Expansion To Target Businesses Under All-New Name
The Bunnings hardware chain is planning a huge expansion to take advantage of growing demand from businesses looking for specialty tool stores.
Bunnings boss Michael Schneider said the chain will open up to 75 stores under a brand new name to be revealed in the coming months.
The retailer realized that traders weren’t looking for power tools, supplies and other equipment there – so a whole new chain is needed.
“This is an opportunity for us to deepen our connection with the specialized trades [trades] categories, ”Schneider said at a Bunnings Strategy Day Thursday.
“A lot [trade products] have no natural place in the product architecture of the Bunnings format.
The company Adelaide Tools, which Bunnings finished buying in 2020, will become a platform for the new chain, which will ultimately be owned by retail conglomerate Wesfarmers.
The stores will be opened gradually over the next three to five years, with the first slated for Western Australia in a few months.
Bunnings recently applied trademarks such as Onya Tools, Dontas Tools and Benchmark tools – a clue to the eventual name of the new trade-focused company.
Queensland University of Technology (QUT) retail expert Gary Mortimer said Bunnings wanted to be a leader in the $ 1.5 billion trade and professional tools market, but realized that his name holds him back.
“There is a perception, overall, that Bunnings is still a consumer-based DIY company,” Mr. Mortimer said. TND.
“Adelaide tools is very clearly positioned in a purely commercial segment.
Mr Schneider also left the door open for further acquisitions in the years to come, following his proposal to buy Australia’s largest tile chain, Beaumont Tiles, in April.
This deal is still awaiting approval from the Australian Competition and Consumer Commission.
“We have very low penetration with the flooring trades – they don’t see the Bunnings format as being relevant to them,” Schneider said.
Bunnings could take over professional plumbing and electrical supply companies to expand into those markets, he said.
“We are always interested in the categories where we are not able to effectively serve customers through the Bunnings format,” said Mr. Schneider.
There will be plenty of competition, however, as Metcash, which owns rival chain Miter 10, bought a controlling stake in Total Tools, a trade-focused company last year, in a bid to capture a larger share of the professional market. .
There are already over 260 Bunnings brand hardware stores in Australia and another 100 in New Zealand.
Six Adelaide Tools stores are already operating in South Australia, where the company will continue to operate under its current name.