Bunnings which was largely responsible for a surge in parent Wesfarmers’ recently released interim profits, is now making a focussed push towards retailing products within the assisted living and disability categories which could open up a market worth several billions for the retailer.
Bunnings is now accredited under the National Disability Insurance Scheme, which could potentially help drive sales of products that are used in the building modifications to support disabled or elderly consumers.
These products include smart locks and doorbell cameras, toilet safety handles, access ramps, anti-slip mats and mobility scooters. It has reportedly launched a new range of more than 2500 assisted-living products across 16 key categories.
According to the NDIS, there are around 5.5 million Australians who have a disability. Figures released by the Australian Bureau of Statistics last year show that more than one in five people (21.4%) had a disability in 2022, up 3.7 percentage points from 2018.
As of the end of last year, 692,823 people in Australia were benefiting from the NDIS.
Apart from the products themselves, Bunnings also aims to make the entire buying process more seamless for its target demographic. As it aims to attract NDIS clients, its assisted-living products come with special pro-forma invoicing which are required to make claims with the NDIS.
“Like other retailers in this space we will be offering pro forma invoicing which is the key to be able to claim back and access government support…5.5 million Australians are now living with a disability and more than one in six Australians are now aged over 65, so that shows you the scale and size of the market. It’s a growing market but you can really see there is a market opportunity for us to be in this space. It is definitely growing at a double-digit pace,” said Bunnings chief operating officer Ryan Baker, according to The Australian.
Older Australians who prefer staying at home rather than in aged care facilities are another major target demographic for these new Bunnings products.
“In a market that’s often fragmented, the category will provide a one-stop shopping experience for customers looking to upgrade their homes at an affordable price,” added Baker.
“The range is focused on safety, style and current trends as well as functionality because we know our customers want choice when it comes to their homes.”
Bunnings sees the addressable market at around $1.6bn, growing to $2.1bn by the end of the decade.
A focus for Bunnings would be to offer these expanded range of products at an affordable price, for which it can leverage its extensive international buying network.
“Considering the market size, we see huge potential in applying our proven strategy of combining lowest prices, wide range and best customer experience to a growing category,” said Baker.
Sales at Bunnings rose 3.2% to $10.28 billion for the six months to December 31. Earnings rose 3.1% to $1.32 billion.
