Last month, a team of analysts at Citi went out to Preston, in Melbourne’s north, to visit a Bunnings store. Of particular interest was half an aisle of car products – tow bars, coolant, engine oil. The hardware chain, a powerhouse in a strong line-up of retailers owned by Perth-headquartered Wesfarmers, had already successfully managed to expand into cleaning and pet products. Could it do the same for auto?
The move is part of a series of Bunnings managing director Mike Schneider’s strategy to keep sales growing. Last year, sales grew 2.3 per cent to $19 billion; earnings rose just 1 per cent to $2.2 billion. Investors want more, particularly if less construction dents Bunnings’ core hardware business.
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