Bunnings’ move to implement smaller format stores will be a win for shopper choice and convenience, but a disaster for smaller independent suburban hardware chains, QUT retail expert Dr Gary Mortimer says.
“This is a strategic move away from their warehouse style, big box formats which had become a destination shopping experience,” Dr Mortimer, from QUT’s School of Advertising, Marketing and Public Relations, said after Bunnings announced a small-scale version of its store would open in Toombul.
“It is an exceptionally smart move by the hardware retailer to capture a new customer base, once serviced by the discount department stores.”
Dr Mortimer said both Big W and Kmart once had large automotive and hardware departments, including paint and decorating items.
“However to reduce costs, both have moved away from offering this full service experience,” he said.
“Mini-Bunnings will attract the shopper looking for convenience and seeking a broader choice than what is currently offered by the discount department stores.
“Shoppers will think, ‘we’re here in the shopping centre grabbing some groceries, I might just pop in and grab a couple of light globes, or some paint brushes or a new step ladder’.”
Dr Mortimer said these new smaller format stores, about the same size of a traditional supermarket, would tap into those shoppers who are not prepared to drive 20 to 30 minutes to a big warehouse.
“While offering a reasonably good range, shoppers won’t get the full gamut of trade and commercial products offered at the warehouses due to the size constraints of existing retail spaces," he said.
“Shoppers will get a glimpse of the first of these mini-Bunnings stores in the vacant Bi-Lo/Coles store at Toombul on Brisbane’s northside.
“Shopping centre managers will also be ‘rubbing their hands together’ with the thought of a well known brand name retailer entering a new market and setting up shop in vacant space they have been trying to fill.
“I would expect the roll-out of these new stores to be reasonably quick as more shopping centre retail space becomes available.
“Brookside, where Myer has announced it will pull out next January, presents another opportunity for a mini-Bunnings.
“However, while shoppers will win out on convenience and choice, it will spell disaster for small independent suburban hardware stores and Metcash’s Mitre 10 businesses which have had ‘convenience and location’ on their side for many years.
"Things are about to become very tough for the little guys with these smaller format Bunnings moving into shopping centres."
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