even bunnings jumping on the EV bandwagon....
Beyond hardware: Bunnings eyes bigger automotive, EV range after success with pets
Matthew Elmas
Sep 30, 2024, updated Sep 30, 2024
Bunnings is exploring an expanded automotive range that includes electric vehicle equipment in a move that a leading expert says will help position the hardware chain for longer-term growth.
Bunnings managing director Michael Schneider said last month that a bigger range of automotive accessories will be released following success with its expansion into pet goods.
That includes stocking charging cables for EVs, the Australian Financial Review reported.
Retail Doctor Group chief executive Brian Walker said the move is part of a strategy from Bunnings to become much more than just Australia’s largest chain for hardware goods.
“They’re expanding into retirement living as well,” Walker noted.
“The growth in these categories expands out the Bunnings offer, creating reasons for customers to visit … and as they get more volume with their suppliers their buying power increases too.”
Bunnings has already scored wins with shoppers on the back of its expansion into pet care in 2023, helping to drive a 2.1 per cent rise in same-store sales despite the retail recession.
Parent company Wesfarmers said the chain is trying to expand its “addressable market”.
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“This include launching expanded cleaning and outdoor ranges and new own-brand products, such as the Citeco safety equipment range, and introducing steel frames to its frame and truss offering,” the company said in its 2024 annual report.
A move to stock EV cables is much more forward looking than these moves, however, with Walker explaining that Bunnings is taking a bet on what we know about the future of transport.
“EVs are 10 to 12 per cent of the overall car market at the moment,” Walker said.
“The projections are that it will be at 20 to 25 per cent in the next three years.”
More broadly, Bunnings also sees an opportunity in the larger automotive category, which is dominated by specialty chains such as Supercheap Auto and Repco.
Those chains stock an incredibly broad range of accessories and equipment, but will need to compete more aggressively on price if Bunnings stocks even a small slice of their range.
Supercheap Auto has an outstanding lowest price promise for consumers, but would need to start competing against Bunnings’ commitment (where customers actually use it).
Walker said the move into automotive also needs to be seen in the context of Amazon’s rising presence across the entire retail market, and Bunnings needs to grow to keep up with them.
“Bunnings are trying to better leverage their in-store and online presence,” he said.
“You go deeper into categories and they all appeal to their core market – middle Australia.”
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