Bunnings expanding online offer to New Zealand in 2020
DIY and homewares retailer Bunnings will expand its fledgling e-commerce offer to the New Zealand market during FY20, once it has completed its staged roll-out across Australia.
In addition to its click-and-collect offer, Bunnings noted it will invest further into its online transactional platform, and will look at expanding the range of its home and lifestyle products made available to customers – either in-store, online, or through a marketplace offer.
Bunnings has been expanding its e-commerce offer throughout Australia over the course of FY19, and is currently aiming to have it completely operational across all of Australia by Christmas 2019.
“This follows the successful introduction of click-and-collect in Tasmania in April,” Bunnings managing director Mike Schnieder recently told Inside Retail.
“We’ve been really delighted with the progress and customers’ response to the offer.”
During FY19, Bunnings grew same-store sales 3.9 per cent, while total sales growth increased 5.2 per cent, earning a revenue of A$13.16 billion ($13.96 million).
EBIT grew to A$1.6 billion ($1.7 billion), 8.1 per cent above FY18, and over half of the Wesfarmers’ total EBIT.
While Schnieder told analysts the retailer invested around A$10 million ($10.6 million) into the initial start-up for its online offer, the business would double that in FY20 to A$20 million ($21.2 million) – with subsequent years of investment and upkeep remaining in that ballpark.
“For the year ahead, we will continue to build on our recognised market strengths to create an even stronger offer and accelerate our trade growth through further investments in customer value, category expansion and growing our service and installation offerings,” Schneider said.
“This will be fuelled by our investment in our data and digital capabilities.”
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