This introduction of a pet range into the Bunnings aisles really is a genius move I reckon.
Although WES is not all about Bunnings …..Bunnings is still the engine room and I think always will be (still half overall WES revenue) so a change like this at Bunnings can have a big impact.
Pet products and supplies leverage well off the customer base heading in there for hardware, paint, garden related and all the other home improvement stuff. Will surely lead to incidental purchases of pet accessories - particularly when you consider how many kids head into Bunnings on weekends with their parents (saw it with my own eyes yesterday)
It’s a known growth sector and high margin. This has to hit Pet Barn ($3b annual sales) and the other specialist chains very hard.
Such an easy, low establishment cost,limited downside ‘add on’ for Bunnings/ WES - should’ve happened 10 years ago.
I’m pretty confident this move will be an instant success and before long be making a significant contribution to the WES bottom line.
WES Price at posting:
$49.60 Sentiment: Buy Disclosure: Held
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