News | Bunnings half-year report


Strong growth in Australia, big downturn in the UK

In Great Britain and Ireland, total sales of the Bunnings and Homebase stores decreased by 15.5 per cent.

In Great Britain and Ireland, total sales of the Bunnings and Homebase stores decreased by 15.5 per cent.

Strong growth in Australia and New Zealand, a spiralling decline in Great Britain and Ireland: this is the picture presented by the Bunnings half-year report (covering July to December 2017) released by parent company Wesfarmers.

Between July and December, Bunnings' total store sales in Australia and New Zealand increased by 10.1 per cent, with store-on-store sales increasing by 9.0 per cent. Operating revenue totalled AUD 6.566 bn. During the six months under review, 11 trading locations were opened, including eight new Bunnings Warehouse stores, two smaller-format stores and one trade centre. At the end of the period, there were 253 warehouses, 77 smaller-format stores and 33 trade centres in the Bunnings network.

A completely different picture emerges in Great Britain and Ireland, where the Australian company operates the Homebase stores it acquired alongside its Bunnings pilot stores. Here total sales decreased by 15.5 per cent, with store-on-store sales declining by 13.4 per cent. For the second quarter, total sales declined by 16.7 per cent and store-on-store sales declined by 15.1 per cent.

Operating revenue in the first six months amounted to GBP 517 mio, a decline of 15.5 per cent (-15.7 per cent to AUD 875 mio). The loss before interest and tax increased to GBP 97 mio (AUD 165 mio). The half-year report states that a significant clearance of discontinued ranges in the prior year was a problem. "Price investments and sales from new ranges did not offset the significant loss of sales that resulted from the exit of non-core ranges and concessions due to inconsistent store standards and poor execution," reads the report. The early sales results of the 15 Bunnings pilot stores were "encouraging", although "the sales uplifts achieved moderated during the winter months".

The company closed five stores in the six months covered. Three of the eleven pilot stores opened during the half year were in new sites and are considerably larger than the stores that were closed, according to Bunnings. There were 234 Homebase stores and 15 Bunnings stores as at 31 December 2017, with a further four stores closed for conversion. A further nine pilot stores are expected to open by the end of June.

|12 March 2018


Post a comment

* Please complete the areas marked in red correctly and in full!.

(will not be published)

* obligatory fields

Latest news

Plus 8.2 per cent in the second quarter saves the first half of the year for the industry

The DIY store trade in Germany made total gross sales of EUR 9.76 bn in the first half of 2018, thus gaining an increase in sales of 1.7 per cent View news...

Bauhof in Estonia sold to Lithuanian group Vilniaus Prekyba

The Estonian DIY store and building materials chain Bauhof has been sold. The Lithuanian trade company Vilniaus Prekyba acquired 100 per cent of the View news...

Würth targeting massive expansion in Italy

The German retailer Würth is targeting massive expansion in Italy. The company, which specialises in fastenings, aims to increase its number of View news...

Homebase reported to be closing up to 80 stores

Up to 80 stores belonging to British DIY chain Homebase are expected to close next week, according to reports on Sky News and in The Guardian's View news...

Actual figures

Statistics Home Improvement Europe

Statistics Home Improvement
This brochure provides a competent overview of the situation in the Home Improvement sector in 31 European countries.

Order now!

6th Global DIY Summit 2018

Rapid, Innovation for end user


Innovation for the end user

More than 1 100 participants came to the 6th Global DIY Summit in Barcelona. Here are the portraits of some of the most important companies that exhibited at the International Congress Exhibition.