Amazon Aiming to Steal Market Share From Iconic Australian Hardware Chain “Bunning”s
Amazon Inc has revealed a plan to nail the market share away from the Bunnings with the launch of a range of outdoor products, including the barbecues, patio furniture and the garden equipment.
The new store of online retail giant, was rolled out on Tuesday, September 10, 2019, and adds to its collection of electronics, domestic products and clothing.
The Amazon Australia manager Rocco Braeuniger said that
“Our new garden store has a huge range of enticing outdoor products, from the gardening equipment to the pool supplies to patio furniture to BBQs,”
“Our garden store adds to over 125 million products already made available on Amazon.com.au, and underscored by the great value and fast delivery.”
The Bunnings owned by conglomerate Wesfarmers, also controls 20% of the hardware and garden supplies market, in Australia and also has seen off competition in some recent years, notably from the Masters Home Improvement.
When asked to the managing director Mike Schneider, he refused to comment directly on the push from Amazon Inc but said that another player in market was nothing new for durable operator.
He further said that,
“We’ve been competing with a vast range of retailers, across a broad spectrum of categories and the products, for a long time, and we always welcome the competition,”
“the Compelling value, convenience, availability and assortment, ensure our customers can trust we have got the right products, both in store and in the online and we also continue to be chosen for this along with more expertise and knowledge of our team.”
Wesfarmers managing director Rob Scott also revealed in Last month, Bunnings had increased the sales in 12 months to June 30 by 5.0% to $13.2 billion in spite of a downturn in national housing market.
He further added that,
“Obviously there was some flaw in the residential housing but as we have highlighted over the years, the Bunnings’ product range is very diverse,”
“And People have overestimated the reliance Bunnings has on the residential housing.”
The Bunnings accounted for 57% of Wesfarmers’ earnings and according to Mr Scott, it was “well positioned for the growth in FY20” in spite of an expected continuation of moderated trading conditions.