Bunnings Outlines Its Simple Plan To Stay Ahead Of The Game
Bunnings Group has a simple plan for continued success: maintain a disciplined focus on lowest costs to support delivery of lowest prices – and to continue to invest in supply chain to meet changing customer needs.
This is according to a presentation given at the Wesfarmers Strategy Briefing Day this morning.
The company is also increasing its focus of kitchen-wares, after slowly moving into this space over the past few years.
Bunnings are planning to push further into the digital space, with plans to “increase the ways customer information is captured, using a strong governance framework” and to upgrade core technology platforms, and fulfilment capabilities.
The recent acquisition of Adelaide Tools and the pending takeover of Beaumont Tiles will see Bunnings Group grow in what it called “catering to ‘share of ute’ and whole of build” projects. Adelaide Tools opened a new Parafield store in March, with the first stores outside of SA opening in the second half of 2021, under a different name. Bunnings MD Michael Schneider wants to open up to 75 of these stores across Australia and New Zealand over the next three to five years. There are also plans to buy more ‘bolt-on’ businesses, to help grow this burgeoning section of the company.
According to Citigroup, market exceptions suggest Bunnings’ sales growth will slow to 2 per cent over the last five months, with its online penetration dropping below 2 per cent, from 3.1 per cent at the end of December.