Australia’s largest DIY retailer

Australia's largest DIY retailer, Bunnings, plans to aggressively continue opening new units despite the challenge launched over the last several years by a joint venture of Australia's Woolworth chain and America's Lowe's, the world's second largest home center chain. What began quietly as a sawmill in 1886 has evolved over time into a retailing giant generating $7.1 billion in sales from 313 locations whose stores range from giant warehouse outlets to a handful of trade centers catering to professionals and tradesmen. Bunnings, which also operates in New Zealand, enjoys an eight per cent market share in that country. Today, however, its 16 per cent market share in Australia is being challenged by Masters, the joint venture of Woolworths and Lowe's, which has rapidly opened stores across Australia's continent. According to Clive Duncan, Bunnings' Director Merchandising and Store Development, the company's philosophy is a simple one that can be described in three terms: lowest prices, widest range, best service. Its range (45 000 stockkeeping units) is markedly greater than that of Masters, the banner under which the Woolworth/Lowe's partnership is operating. The chain added building materials to its business back in 1952 and began operating home centers and small format stores in both Australia and New Zealand. In 1994 it began operating warehouse units, having witnessed the rapid growth of warehouse home centers in the United States. Today it operates 210 warehouse stores, 67 smaller format home centers and 36 trade centers. Its expansion plans, despite the new competition, remain aggressive. Two to four smaller stores (up to 5 000 m² in size) annually; four to eight trade centers a year and ten to 14 warehouse units annually. These will range from 8 000 to 18 000 m².