BONDI JUNCTION HINEWS - WHAT DOES THAT LOOK LIKE? - Hardware News Network
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HINEWS
BONDI
JUNCTION
TIMBER & HARDWARE STORE
Vol. 6 No. 3
POST-PANDEMIC HARDWARE RETAIL: STATS:
WHAT’S
WHAT DOES THAT LOOK LIKE? NEXT?
contents
HI NEWS VOL 6 NO 3
Bondi Junction Timber & Hardware Bunnings Results
The Bondi Junction Timber & Hardware Store (Bondi Junction Hardware) Bunnings returned great results for
has been operating in one form or another at its Oxford Street location for its FY2019/20. Highlights include:
well over 60 years. Over the past two years, however, it has undergone a $15 billion in sales revenue, up by
transformation as its managers, Adrian Blythe and Alan Grinham, have used 14% on the previous financial year,
tools such as SYM-PAC POS to turn a once-cluttered store into a modern, and store-on-store (comp) sales
format-driven retail location, with clear product organisation and consolidated growth of 11%. However, Bunnings
lines, providing tradies with the “get in, get out” experience they crave. The managing director MIchael Schnei-
store has managed to achieve this with significant help from its suppliers, in- der cautions that the hardware
44 38
cluding Sutton Tools, Bremick, Romak and Duralex, especially when retail industry remains
it comes to in-store fittings. uncertain.
Retail as audience Statistics
Opinion remains split over whether the Sars-CoV-2 pandemic is a disastrous The statistics we’re getting from
interlude, or a signal of fundamental change to come, a moment of another the Australian Bureau of Statistics
cultural evolution. The first approach assumes that “normal programming” are beginning to track the effects
will resume once the scientists take care of the problem (and the politicians of the pandemic. One outcome:
accept the accolades), the second that we are seeing the beginning of a between April and July 2020,
different future to the one imagined as recently as 2018. In the second view, hardware retail revenue grew by
we could be moving towards a “post-manufacturing” economy. This refers to $1.9 billion over the same peri-
an economy where the growth in value has shifted from the manufacturing od in 2019. But will this growth
61 12
processes themselves, to the ability of the products produced to continue?
successfully interact with software. Such a move could bring big
changes to retail.
Publisher’s Note
Walking into Bondi Junction Timber &Hardware was a little different to other
stores we have visited. Located close to Sydney’s CBD, it serves primarily trade
customers and local builders. We soon learnt there was a lot more to what we
saw in the compact space that houses its hardware and timber products. Nothing
quite replaces a face-to-face tour of a store to see the work that has been done by
people who are engaged and interested in their work. At Bondi Junction Timber &
Hardware, head office edicts are replaced by careful and gradual merchandising
decisions executed by hand.
6
Sound ideal? Maybe. But it’s great to see the industry offer a genuine
place for experienced individuals with a strong work ethic because
they have a lot to offer.
On the cover: Alan Grinham (left) and Adrian Blythe of Bondi Junction Timber & Hardware
contents
COMMENT
Politics is never more annoying than when it forces there’s a lot of effort wasted on positions designed to
us to live in “the land of the dog-whistle”. At the mean different things to different parts of Australia.
moment, as serious policy arguments get underway What’s needed is growth, not more
about how to help Australia return to prosperity, protectionism. 9
Home Improvement
News is a publication of
big box update...........................................................17
Net Percent Pty Ltd.
© 2020 Net Percent Pty Ltd indie update................................................................22
Betty Tanddo
supplier update..........................................................29
publisher
betty@hnn.bz retail update................................................................34
0411 031 832
usa update..................................................................81
Scott Lewis
editor-at-large europe update............................................................86
scott@hnn.bz
new products..............................................................89
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P: 07 3147 8790 E. sales@vidawood.com
W. www.vida.se/en/info/vida-wood-australia
publisher’s note
Walking into Bondi Junction Timber &Hardware was a little
different to other stores we have visited.
Located close to Sydney’s CBD, it serves primarily trade cus-
tomers and local builders. We soon learnt there was a lot more
to what we saw in the compact space that houses its hardware
and timber products.
On arrival, we met with the hardware manager, Adrian Bly-
the and timber manager, Alan Grinham. They took us through
the store step-by-step and explained the changes they made.
Typical of many people who work in the hardware industry,
they were a little too modest about their accomplishments. But
we could see the small, incremental changes added up to quite
a lot.
Of course, this visit took place in BC (before coronavirus).
Nothing quite replaces a face-to-face tour of a store to see
the work that has been done by people who are engaged and (l-r) Timber manager,
Alan Grinham and hard-
interested in their work. At Bondi Junction Timber & Hardware, ware manager, Adrian
6 head office edicts are replaced by careful and gradual merchan- Blythe
dising decisions executed by hand.
For Adrian, it seemed like he was “re-building” the store,
section by section, so that it told “a
story” that made sense to his customers.
Like many highly skilled retailers, he is
always on the look-out for displays and
products that have real, demonstrable
innovation.
Both Adrian and Alan’s decisions for
the store are discussed and ultimately
supported by an owner who trusts them.
Sound ideal? Maybe. But it’s great to
see the industry offer a genuine place for
experienced individuals with a strong
work ethic because they have a lot to
offer.
I’m sure the scenario I have just de-
scribed gets played out in different ways
all the time in every type of hardware
store, both independent and corpo-
rate-owned, and I hope we get an oppor-
tunity to see more of them.
For an industry that thrives on face-
to-face contact, the past six months have
hnn.bz
been challenging despite the sales boost as a result of stay-at-
home orders and more renovations or DIY projects were being
done.
Retailers and their suppliers were asked to accelerate some
aspects of their businesses (ie. stock) and decelerate (for example,
staff) when restrictions forced retailers in metropolitan Mel-
bourne to close their doors except for trade.
And almost overnight, every retailer impacted by the shut-
down had to be able to offer an efficient click and collect service.
In the coming months, we will see which businesses are the
most prepared as we start the post-COVID recovery, and what
changes that had to be made will become the “new normal”.
As we put the final touches to this edition during extended
stage four restrictions in Melbourne (where HNN is based), I
think of what we used to take for granted: parties, catching up
with friends, shaking hands or hugging acquaintances and not
taking home décor that forms the background of Zoom or Webex
calls all that seriously.
In the middle of “iso”, a Zoom background is often interpreted
as an extension of a person’s individual characteristics or per-
sonality. Not surprisingly, it has almost become all about the
backgrounds. A messy, cluttered home office, a chaotic kitchen
with pets and children or blank, grey walls. What do they mean?
That’s all up to you.
As writers and editors, we are accustomed to spending long
7
stretches of time alone doing our work. But having to work alone
because we have no choice makes things a little different.
The small home office now shares space with exercise equip-
ment that could probably be used more often. A trip to the
supermarket becomes a major outing and a highlight of the day
or week. Connections to people outside your bubble are made
through digital devices much more than before.
But despite the changes to daily life, the mechanics of putting
together a magazine have not changed. We write, sometimes
re-write, edit, proof and type-set. Without always knowing it,
we consistently try to match the level of involvement and com-
mitment that we see in people like Adrian and Alan, and many
others we have met in the industry. It’s the least we can do.
Until next time,
Betty Tanddo
Publisher
hnn.bz
John Ioakim
independent with a strong brand and no forced promotional stock eating up
The Lakes H Hardware - LAKES ENTRANCE, VIC floor space and our bottom dollar.
How did you come into the hardware business?
I was the store manager of this store under the previous owners when it was How is business today?
a bannered store. In 2016 the owners called me looking to sell. My wife, We opened in July 2016 and 12 months on business is good. We’ve had
Leanne and I spent many a night around the kitchen table running figures growth and we have strong customer base. Our trade business makes up
and swapping ideas for the store. We decided to go for it but we wanted to 75% of the business, I look after that and Leanne is the face of our retail
be truly independent and in control of our stock. side. It’s come along way from our first official order that BGC sent to our
house and I borrowed a trailer to be able to deliver it to site.
What made you decide on branding your new store H Hardware?
We had a few recommendations to join the HBT Buying Group and when that What would you say to someone considering transitioning
stacked up we had a chat with Steve Fatileh who showed us the branding to H Hardware?
for H Hardware. It looked great, the colours are eye catching and it really If you want to have control of your business, your stock, your promotions
stands out. The clincher for us was that the store was ours, we could be and a stand out brand,then H Hardware is a no brainer.
For more information and
membership application call
1300 305 719
comment
After the Sars-CoV-2 pandemic, it is almost incon-
ceivable that we will return to anything like the cul-
ture and society we knew in Australia in 2019. While
there is some talk of returning to a “new normal”, real-
ly at the moment it seems more likely we will eventu-
ally find our way out to a “new abnormal”.
Though it’s true that this sense will be strongest in Victoria, due to the
difficult path the state has gone down, it’s possible it will become much
more general, as the difficulties associated with the pandemic continue
over the next couple of years.
That’s not just because of the economic ruin that the pandemic will
leave in its wake. It’s also because of factors that were emerging as issues
before the pandemic, and which Sars-CoV-2 has only served to starkly
outline. Perhaps the best summary of these issues is provided by Guard-
ian columnist John Harris in his column from mid-September titled “Dis-
ruption, destruction and chaos has become the new way of governing”
(Guardian). At the heart of it is this paragraph:
9
The sociologist Zygmunt Bauman, in his book Intimations of Postmoder-
nity, summarised Baudrillard’s portrayal of a culture in which “images
represent nothing but themselves, information does not inform, [and]
desires turn into their own objectives”. This shines a penetrating light on
the politics of today. If a policy provokes, that may be its only point; when
anything triggers anger and upset, the outrage will quickly drift away from
what caused it, and itself become the focus of the argument. There is little
point looking for anything more solid or certain.
As Mr Harris’s comments point towards, politics in Australia seems
at times to be almost a series of “sock puppet fights”, where the hands
inside the opposing socks are the forces aligned behind two radically dif-
ferent world views, and the socks a simple policy sleeve slipped over this.
It’s hard to characterise exactly what those two differing views really
are. Roughly, though, one point of view tends to idolise some point in
the past, which combines the income distribution of the 1970s with the
business dynamism of the 1990s. The other point of view looks to some
undefined point in the future, and the possibilities that new technologies
could bring about.
We can see how these views work out in regard to, for example, cli-
mate change. Scientifically, the evidence has become overwhelming that
climate change has occurred, and that its consequences are devastating.
There is little doubt that renewable energy sources, in this context, make
a lot more sense.
But for the proponents of the past, that would mean giving up a lot:
mining the coal or gas, building the power stations, and then tending to
huge, multiple steam turbines.
hnn.bz
For the proponents of the future, it’s hard to make any sense out
of that view. The most rigorous scientific studies are met with a
kind of stuttering amateurism mixed with crazed nutter non-rea-
soning (5G caused the pandemic, etc.). It’s a short step from that
to the rantings of Australia’s Deputy Prime Minister about apart-
ment-dwelling crazed lefties in the cities not being entitled to hold
an opinion about the bushfires.
The fundamental non-truth at the heart of the resistive forces
is that they pretend their objective is to deliver the “best” economy
possible. The reality is that what they want is not the best econo-
my, but one particular economy. That economy has one dominant
design feature: it mostly benefits the same groups who received
mammoth benefits from the natural resources and manufacturing
driven sectors from 1970 through to 2010.
There are a number of difficulties with this approach. The first
is that it creates the divisiveness we see in Australia today. Overall
economic growth — which would benefit everyone — is being held
back so as to privilege one particular group. It’s not just that there
are winners and losers, it’s that the current losers represent the
highest potential for real growth into the future. Australia needs
to accelerate development of technology just to keep up with the
developed world, including near neighbours such as Singapore.
Secondly, this kind of drift away from the historical reality is just
not sustainable: the consequences keep piling up. Climate change is
10 one consequence. You can argue against a carefully researched set
of statistics by simply refusing to understand it, or by referring to
some scientific outlier study with no peer credibility. But it is hard-
er to argue with bushfires, houses destroyed and lives lost.
This applies exponentially to the pandemic. The governments
of the US, the UK and Australia could have put the scientists in
charge, they could have devised rapid measures to contain Sars-
Cov-2, and a sensible way to balance economic recovery against risk
afterwards. Instead, in the US and Australia, federal governments
chose to hive off responsibility for virus containment to states.
The political difficulty the Australian government faces today is
how to reboot the economy while maintaining its unfair approach
to different economic sectors. What makes this almost impossible
is that those sectors it would like to suppress — such as renewable
energy sources — are the very sectors (again) with the strongest
prospects for future growth, and hence the highest return on in-
vestment.
However, this time the tricks are unlikely to work. It’s just one
step too far, and the kind of tortuous reasoning required to reinvest
in evidently outdated industries will not survive.
By early 2023, we should start to see signs of a true recovery take
place. We simply have to face up to the fact that, after the pandem-
ic restrictions finally ease in (hopefully) mid-2021, we will have a
further 18 months of a kind of economic restrictions. But if we can
get through the first, we can get through the second as well.DIGITAL
IS THE FUTURE
OF MARKETING
11
YOU NEED TO FUTURE PROOF YOUR BUSINESS.
Still relying on print? Consider this: how much time do your customers spend
using their mobile phone and computer? And how much time do they spend
reading magazines? Which matters more to them?
DIGITAL is all about performance and engagement. DIGITAL readers opt-in
to receive your message — they’re not just another address on a mailing list.
DIGITAL doesn’t just earn attention, it measures it as well. No other media
has the equivalent of downloads, which directly show reader engagement.
And DIGITAL is also less expensive, simpler and more flexible.
To make the move to DIGITAL, just call HI News on 0411 431 832, or email
Betty Tanddo on betty@hnn.bz. The future looks great, believe us.
hnn.bzstatistics
ABS Retail, Proposals &
Work Done
At the moment what Australians to “get out represents an almost The difficulty, as
in this every business owner from under the doona”. perfect venue for we’ve seen in Victoria,
update:
update: -- and especially every Since infections bal- transmission to occur. is that even if numbers
retailer — wants to looned in Victoria, very Most retail is indoors, have been brought to
•start
ABStext
stats for know in Australia is: little more has been crowded, with poor a very low level, if they
hardware retail what happens next? said on the subject. external ventilation, start to grow quickly,
indicate the What does Stage II For retailers, as we people constantly the available resources,
sector has gained (and Stage III) of the learn more about the touching surfaces, and such as testing and
an additional pandemic look like? Sars-CoV-2 virus, it has so forth. contact tracing, are
$1.9 billion in A series of emergency become increasingly
Top, Chart 1 shows ABS stats for hardware retail sales for
revenue for April measures — JobSeek- evident that the classic
the 12 months to July by region. Bottom, Chart 2 shows
to July 2020 as er, JobKeeper, inter- retail shop (as well as the extent of change between comparable periods.
compared to the est rates below 1%, bars and restaurants)
12 same period in mortgage repayment
2019 “holidays” — have kept
• The peak month Australia away from
for retail growth the kind of financial
was May 2020 panic which, combined
for most states, with the pandemic,
though Victoria could have been cata-
peaked in June strophic. But, as Aus-
2020 tralians wait for the
delayed Federal Budget
• Building propos- to be delivered in
als have dropped
October, the signs that
substantially
are coming from the
for multi-unit
government seem to be
dwellings, while
proposal num- more about uncertain-
bers for houses ty than anything else.
was relatively The fact is that while
stable there are nations that
have handled the
• In building work pandemic better than
done, alterations Australia — though
& additions grew Australia has, by global
during the March
standards, done pretty
2020 quarter, but
well — the number
returned to de-
that have successfully
cline in the June
2020 quarter reopened their econo-
mies after the pandem-
ic shutdown in March
and April is very
low. In early May we
heard the Australian
Prime Minister, Scott
Morrison, harangue
hnn.bzindie
statistics
update
quickly overwhelmed. but so too is the short-
What that means in fall in demand that
practical terms is that occurs in recessionary
until there is an actual conditions. That short-
vaccine available, fall in demand will be
the fight is not about a significant brake
bringing a booming on the recovery. Until
economy back, but households and busi-
creating essentially a nesses are confident
subsistence economy, about future demand
based on very con- and income, they will
trolled risks, with the be reluctant to spend
likelihood that there and invest.
will be some three Business confidence
to four week periods has rebounded some-
when harsher restric- what after a steep fall,
tions come back into to be close to neutral,
play. but household con-
In terms of the vac- sumer confidence
cine itself, it’s evident remains negative,
by now to most in Aus- about 14 points below
tralia that it’s slightly neutral. It also has
optimistic to expect to be acknowledged Top: Chart 3 shows
13 there to be a viable, that Australia went the month-on-
distributed, effective into the pandemic in month percentage
version by the second a weakened state. The change for the 12
calendar quarter of push to balance the months to July
2020. Middle:
2021. budget (“back in the Chart 4 shows the
One clear message black” as the politi- number of building
about how bad things cal messaging went) proposals for four
could get, is a signal meant an absence of quarters ending
from the Reserve Bank stimulus, which saw, with the July
quarter. Bottom:
of Australia (RBA) that for instance, business Chart 5 shows the
it is willing to perform investment as a share percentage change
further quantitive eas- of gross domestic prod- in building pro-
ing. Several Australian uct continue to decline, posal numbers for
economists have inter- with it now close to the comparative four
quarters ending
preted this as meaning lows last seen in the with the June
it’s quite likely interest recession of the 1990s. quarter.
rates could move even during 2020 have
Hardware retail
lower, down to 10 basis been acceler-
points (0.1%). The Australian ated, resulting
In a speech delivered Bureau of Statistics in considerable
on 22 September 2020, (ABS) has released overall gains. The
Guy Debelle, deputy retail statistics for July Australian Capital
governor at the RBA 2020, though these do Territory (ACT)
described the economy not include the most is the winner in
and its prospects like recent numbers for terms of percent-
this: the Northern Territory age gain, at 17.28%,
Overall, the recovery and Tasmania, so we but Victoria (VIC)
has not been a rapid (unfortunately) have to gained 14.42%, in-
bounce but more of a exclude these. Looking creasing revenue
slow grind. The virus is at the first chart for by $805 million.
having its effect, par- the 12 months to July New South Wales
ticularly because of the 2020, we can see an (NSW) saw a
lockdown in Victoria, expected pattern. Sales gain of 10.22%
hnn.bzstatistics
and $586 million, decline. Will the trend- with most indepen- Top: Chart 6 shows the value of building work done for
while Queensland line go down steeply, or dents relying heavily year ending June quarter. Middle: Chart 7 shows the
gained $448 million, will some of the home on trade sales, the percent change between subsequent periods of the
value of building work done. Bottom: Chart 8 shows a
an increase of 11.09%. improvement spend- stats from the building quarter-on-quarter comparison of the change in value of
Western Australia and ing prove to be more industry are of particu- building work done.
South Australia had “sticky”? lar importance. It is
growth of 13% and 14% Chart 4 gives some always difficult to
respectively. Australia idea of how much forecast accurately
overall saw hardware extra money has been based on building
retail revenue increase pushed into hard- proposals. Chart 5
by 12.25% to $21.9 ware retail during the shows the number
billion. pandemic. This is a of building propos-
The second chart comparison between als for the trailing 12
shows the percentage the COVID-19 period months to July, and
increase for compara- April to July 2020, with Chart 6 shows the
tive 12 months to July. the pre-COVID-19 peri- percentage change
As you would expect od of April to July 2019.when comparing
there is a sharp clus- In terms of Australia those 12-month
tering of growth, as overall, an additional periods. The major
the pandemic and the $1.9 billion has been feature of these is
subsequent increase spent in the COVID-19 to outline that the
in hardware sales is period over the equiva- fall for the prior
a nationally defining lent 2019 period. year was much
14 factor. Can it continue? more significant
Chart 3 shows a How far down will it than the fall in the
month-on-month go? Is this an ongoing most recent year.
comparison between expansion, or are we It’s likely that is a
August 2019 to July looking at purchases function of lowered
2020, and August 2018 being brought forward, interest rates as
to July 2019. While the followed by a later much as anything
other two graphs are slump? else. Builders likely
good for getting an It’s not possible to expect there will be
overall context, this have answers to these lag between when
graph is perhaps the questions right now, the economy re-
most interesting in but most of us would covers and interest
terms of seeing what likely agree it’s going rates rise again, es-
the pandemic is doing to be a combination pecially as the RBA
monthly. The peak of all those factors — had indicated it is
month for every state some genuine boosted willing to tolerate a
except VIC is May. VIC spending on projects higher rate of inter-
peaks in June, and that would otherwise est (we would guess
then declines less than not have happened, up to 3%) than it
the others moving into some holiday season has in the past.
July. purchases brought Chart 6 compiles
We can predict a high forward. The unknown the value of work
likelihood that we’ll factor is, with some done for the year
see VIC decline fairly kind of recession likely ending in the June
sharply for August and over next three quar- quarter. As it shows,
September, when those ters, whether hardware after rapid growth
numbers come out, as retail will hold its own,through to 2016,
DIY consumer retail or families will cost-cutdriven primarily by
will be shut down. everywhere. work on multi-unit
What will be really dwellings, growth
Building industry
interesting is to see slowed in 2018 and
how much states such In terms of looking 2019, before show-
as NSW, QLD and WA further into the future, ing decline in 2020.statistics
Alteration & additions the June 2020 quarter. or internationally. Lon- the comparable quar- forecasting a 27% fall
(in this case, those New houses also saw a ger term effects will ter in 2019. Construc- in the housing indus-
that required permits) reduced decline in the include both a reduc- tion projects will likely try demand for the
showed slight but March 2020 quarter, tion in overseas immi- continue at a subdued current financial year
steady growth. before returning to its gration to Australia, as rate for the first two if further stimulus is
Chart 7 shows the December 2019 quarter well as reduced birth calendar quarters of not forthcoming, that
comparative growth rate of decline in the rates (which affects, for 2021, but given the slow seems something of
rates for these periods. June 2020 quarter. example, people up- progress through 2020, an “ambit” number,
2019 shows a consoli- From this we can sizing their dwellings). a back-up of work will designed to promote
dation around slightly determine that while However, both of those take some time to clear. the need for a stimulus
negative to slightly the June 2020 quarter are, to some extent, re- The real question is package.
positive growth rates, has not been good for versible. We could see going to come when One issue that might
followed by a slide the work done num- increased migration in May/June 2021 rolls come up — as it should
down to decreased ac- bers, there was already 2023, for example, and around. We could see — is how much the
tivity, with alterations a pattern of decline birth rates might catch FY2021/22 produce housing industry really
& additions falling the present. Alterations up as well. substantially reduced deserves a stimulus
least, and multi-unit and additions did get So the two questions building activity, as package. Construction
dwellings falling the a boost in the March that need to answered more cautious de- might employ a large
most. 2020 quarter, but this are: how is demand velopers wait for the number of workers,
Chart 8 shows a was surprisingly short- going to play out over economic recovery but it remains one
quarter-on-quarter lived. the next two years? to get underway. of the top industries
comparison from And, how much is the Which brings up the when it comes to a
the September 2016 Analysis government likely to possibility of housing near complete lack
15 quarter through to Putting this all to- stimulate the dwelling industry support in of real productivity
the June 2020 quarter. gether, what is the pic- construction industry? the 2021/22 budget. improvements. We
Alterations & additions ture that is revealed? One possible pattern Some 6000 Australians could see a situation
show slowing decline First of all, most people of demand will see a re- have applied for the develop where gov-
in the December 2019 would agree that the surgence in home ren- narrow-focus Home- ernment stimulus
quarter, followed by a current recession is ovation work through builder $688 million becomes dependent on
lift into actual growth likely to be finite, in the final calendar quar- stimulus plan, but that the industry bringing
in the March 2020 that it has not been ter of 2020, though it’s will run out by the end in some improvements,
quarter, and then a re- caused by anything unlikely this will reach of 2020. While Master such as modular house
turn to slight decline in structural in Australia the same numbers for Builders Australia is construction.
HI
NEWS
WHAT THE PRO’S READ
NEWS/ANALYSIS hnn.bz CLICK TO SUBSCRIBEJohn Ioakim
independent with a strong brand and no forced promotional stock eating up
The Lakes H Hardware - LAKES ENTRANCE, VIC floor space and our bottom dollar.
How did you come into the hardware business?
I was the store manager of this store under the previous owners when it was How is business today?
a bannered store. In 2016 the owners called me looking to sell. My wife, We opened in July 2016 and 12 months on business is good. We’ve had
Leanne and I spent many a night around the kitchen table running figures growth and we have strong customer base. Our trade business makes up
and swapping ideas for the store. We decided to go for it but we wanted to 75% of the business, I look after that and Leanne is the face of our retail
be truly independent and in control of our stock. side. It’s come along way from our first official order that BGC sent to our
house and I borrowed a trailer to be able to deliver it to site.
What made you decide on branding your new store H Hardware?
We had a few recommendations to join the HBT Buying Group and when that What would you say to someone considering transitioning
stacked up we had a chat with Steve Fatileh who showed us the branding to H Hardware?
for H Hardware. It looked great, the colours are eye catching and it really If you want to have control of your business, your stock, your promotions
stands out. The clincher for us was that the store was ours, we could be and a stand out brand,then H Hardware is a no brainer.
For more information and
membership application call
1300 305 719big box update
Store builds continue in
Australia and NZ
Construction has
begun on a Bunnings
in this warehouse in the
update:
update: Lockyer Valley (QLD);
the Bunnings Kem-
•start text
Focus remains on bla Grange store has
staff and custom- replaced the Warra-
ers throughout wong warehouse in
COVID-19 restric- NSW; Palmerston’s
tions $58 million Bunnings
store in NT is three
• Latest initatives
times the size of its
include apps,
project bundles previous site; Bunnings
and kit homes in said it has outgrown
17 New Zealand its current location
in Inverell (NSW) and
• More Bunnings there are plans to build
stores are being a new store; there has The Bunnings Palmerston store has welcomed customers
built around been a lot of activity
Australian and on the site in Wanga-
drive-through which several local and great- Big Kev is next to the
New Zealand ratta (VIC) where the
is more than double er Northern Territory nursery.
the size of the previ- organisations such
Bunnings store is being Inverell
ous store, and there is as the Jabiru Men’s
built; the Bunnings de- under-cover parking Shed, Helping Peo- Bunnings has indicat-
velopment at Plainland for 400 cars. ple Achieve, and the ed that it is looking to
(QLD) is going ahead; Complex manager Liz Arnhem Land Progress build a new store on a
and site clearance work Politis told the Illawar- Aboriginal Corpora- different site from its
has begun for a store in ra Mercury there were tion. current premises in
Queenstown, New Zea- many new merchan- Complex manager Inverell (NSW).
land; and a five-level dising concepts in Clayton Leeder told The preferred site on
Bunnings Warehouse the store including The Northern Territo- Jardine Road would
is tipped for Frenchs different wardrobe ry News the store has require rezoning by the
Forest (NSW) after a and bathroom, as well an additional 20,000 Inverell Shire Coun-
development appli- as a kitchen design lines, a seven-line cil for a large format
cation was submitted centre. There is also drive-through and a store development.
to Northern Beaches an extended artificial bigger nursery offering Although Bunnings
Council in June. plant range, and garage with undercover land- has made no formal
Wollongong storage displays. scape. There are 450 re-zoning application
car spaces underneath yet, Inverell Shire
Bunnings Kembla Palmerston councillors request-
and 19 at the front
Grange is a $62 million After more than a ed an information
of the store. Inside
development that year of construction, report be put together
the store, there are
measures 17,000sqm, Bunnings Palmerston regarding the Inverell
12 brand new kitchen
approximately has welcomed cus- Local Environmental
concepts alongside a
5000sqm larger than tomers. As part of the Plan 2012, according to
wide range of bath-
the old Warrawong opening, the store has a report in The Inverell
room displays.
store it replaced. There donated equipment, Well-known local continues next page
is a seven-lane timber materials and PPE to landmark, dinosaur
continues next page hnn.bzbig box
update
Store builds (cont.)
With businesses such site three years ago.
as Bunnings, ALDI, Independent commis-
Bridgestone, Wool- sioners rejected the ap-
worths and McDonalds plication in 2018, with a
complementing the major bone of conten-
local businesses at tion being that the
Plainland, Plainland is use of the site would
now firmly established contribute to a future
as an important hub shortage of industrial
for business and com- land in the area.
munity activity in the Bunnings appealed
Lockyer Valley. the decision to the
The Bunnings facility Environment Court,
will be built at Plain- which ruled in its fa-
land Crossing, on vour 13 months ago. It
5.123ha of vacant land responded to Queen-
bordering Endeavour stown Lakes District
Bunnings Kembla Grange has recently opened Way, Burdekin Street, Council concerns by
Gehrke Road and the making changes to the
Times. large national compa- being be built at Plain- Warrego Highway. The design of the building’s
This was present- nies are pulling out of land in the Lockyer development plans exterior, site layout
18 ed and discussed by smaller regional com- Valley is expected to detail 182 parking and landscaping.
councillors during a munities, we have one open by Easter 2021. It spaces, 80 of which are Related:
Civil and Environmen- that wants to invest in is being developed by for staff, 10 motorbike Bunnings NZ rejected for
tal Services Committee Inverell. De Luca Corporation. spaces and four spaces Queenstown store – HI News,
meeting. Founder and managing designed for vehicles
Wangaratta page 18
The committee’s director Nic De Luca with trailers. https://hnn.bz/hin-
resolution was to Bunnings is expected said the Plainland site ews-4-02.pdf
request additional to open its doors to the was a strategic acqui- Queenstown (NZ)
information regarding new Wangaratta store sition for the business, Bunnings New Sources: The Courier-Mail, Ill-
the number of vacant in mid-November. following its Kingaroy Zealand is proceeding awarra Mercury, The Northern
residential blocks and This outlet will have a and Lawnton Bunnings with work on a new Territory News, The Inverell
approved residential 4300sqm retail ware- developments. He told hardware store in Times, Wangaratta Chronicle,
subdivisions within house, a drive through The Courier Mail: Frankton, a suburb of The Chronicle and Otago Daily
one kilometre of the B5 timber sales area and We’re extremely excit- Queenstown. A spokes- Times
Business Development an outdoor nursery. ed and proud to be de- woman told the Otago
Land Using Zoning on Bunnings regional livering new Bunnings Daily Times the new
the corner of Jardine property development stores in Queensland, store was expected to
Road and Gwydir manager, Andrew particularly, during be opened in mid-2021.
Highway. O’Neil, said the proj- these challenging The Frankton store,
However, the pro- ect was running on economic times. It is which will provide
posed rezoning has schedule. He told the testament to our long- competition for nearby
received support from Wangaratta Chronicle standing relationship Mitre 10 Mega and
the Inverell Chamber in July: with Bunnings. Placemakers stores,
of Commerce. Cham- The site will undergo De Luca is also will consist of an
ber president, Nicky a transformation over building other Bun- 8100sqm warehouse
Lavender said: the next month. This is nings Queensland and outdoor areas for
This development because the structural stores in Pimpama and a garden centre, timber
would secure approxi- steel for the store is Yeppoon. The store and building materials
mately 45 new jobs and scheduled to be erected. in Plainland is part yard, and parking for
go close to doubling Plainland of a master planned 134 vehicles.
the size of [the current] community. Plainland The company applied
Bunnings store. In a The $19 million Crossing Estate man- for resource consent
period of time where Bunnings store that is ager Joe Gorman said: for the Frankton
hnn.bzbig box
update
Staff and customers prioritised during the pandemic
As Victoria entered September 10 and 14
stage four restrictions, this year.)
Bunnings managing And according to an
director, Michael exclusive report in The
Schneider said in a Australian, the retailer
statement: commissioned Quan-
Our absolute focus tum Market Research
is on the safety of our that found most Victo-
team members and rians who intended to
customers and we are complete at least one
grateful that we have a home improvement
way of supporting the activity in the months
community and small to come indicated
businesses during this that doing so would
time and we support contribute positively
the government in this to their mental health.
common-sense ap- (Quantum surveyed
proach… just over 1000 Victori-
Mr Schneider an shoppers between consumers demon- Bunnings said it has COVID safe practices
continued to put the August 21 and 26.) strating a desire for Kmart and Officeworks map, retail stores will
safety and welfare of This survey also Bunnings to reopen if throughout the initial not reopen until Oc-
19 the Bunnings team found people in Mel- restrictions ease, they six-week shutdown pe- tober 26 or even later.
and customers as its bourne were getting do not feel exceptions riod. This affected up However, Wesfarmers
number one priority increasingly frustrated, should be made for the to 30,000 workers who recently offered to
when the Victorian with more than a third hardware retail chain. would have been left co-design COVID-19
government released surveyed saying more Under Stage 4 re- with only two weeks’ protocols with the
its COVID-19 recovery should be done to ease strictions, Bunnings pay to last through Vic- Victorian government
plan and extended restrictions. stores in metropolitan toria’s first six weeks of to enable shops to
stage four restric- Perhaps most rele- Melbourne remain stage four lockdown. start opening from
tions. From his initial vant to the hardware open for trade cus- Wesfarmers is not September 28. Mr Scott
support, he has since retailer, the survey tomers only and offer eligible for JobKeeper, told The Australian
expressed frustration found that most Victo- online ordering, click & leaving affected staff Financial Review:
about the Victorian rians believed Bun- deliver and contactless without government We would welcome
government’s plan be- nings demonstrated drive & collect to retailassistance as they the opportunity for
cause of what he sees high levels of compli- customers. sit out the COVID-19 further collaboration
as a lack of consulta- ance with COVID-19 Mr Schneider said crisis. But Wesfarm- with the Victorian
tion and its erroneous safety regulations. the company has made ers decided to pay its government and health
view of the retail sec- Nine in 10 agreed that significant advances affected workers to officials about how our
tor as one homogenous when stores like Bun- with online ordering sustain them through retail businesses have
group where stores are nings actively enforced and has fine-tuned its the period. evolved to be COVID-
viewed as all the same. things such as mask processes which places Wesfarmers CEO Rob safe and how they
To potentially add to wearing and social dis- them in a good place Scott told The Age that could further adjust, if
this frustration, the tancing, it reinforced to serve customers the company is “going required, to meet con-
latest research from that everyone should during lockdown. to do everything we cerns about reducing
market research com- be following the rules. can to support our people movement.
pany Bastion Insights Ninety-two per cent of Wesfarmers
team through this to We have a range of
found that more than those surveyed would support
the extent that it’s practical suggestions
60% surveyed support- be “somewhat comfort- Bunnings’ parent possible” in response to which could be rapidly
ed a return to shopping able” visiting a Bun- company Wesfarmers a question on whether implemented and sup-
at Bunnings. (The nings store, post-stage pledged that it would staff would continue to port a resumption of
Bastion report is based four restrictions. continue to pay its be paid. more business activity
on a national survey However, the report full-time staff at Bun- Based on the Premier
of 970 people between also said that despite continues next page
nings as well as Target, Andrews’ latest road
hnn.bzbig box
update
App development, bundles and small houses
In recent months,
Bunnings has main-
tained its focus on cus-
tomers by expanding
its offerings, both on-
line and offline. The big
box retailer introduced
the Product Finder app
to assist customers in
navigating its ware-
house stores during
the initial stages of
the pandemic; it also
launched a DIY service
to make starting and
finishing a project
easier; and Bunnings
has completed over 100 year” with a noticeable
flatpack homes in New Bunnings’ product app has been popular with customers during the pandemic increase in downloads
Zealand. Australia and New Zea- tions, and check stock chase in store. noticed during the
land managing direc- levels at their local In addition, Bunnings second half, coinciding
20 Popular apps
tor, Michael Schneider. store. They can create a said it has continued with COVID. He added:
The Product Finder The app — available shopping list and plan to improve the online The app includes a
app is designed to help on the App store and their trip in advance. experience for its trade digital self-checkout
customers “research Google Play — allows However, the ability customers, building option that enables
and find the products shoppers to search to purchase products is on the creation of the trade customers to get
they need in-store and Bunnings’ wide range not currently a feature Power Pass app. Mr in and out of stores and
help them to get in of products and find of the Product Finder Schneider said the “app back on the road more
and out of our stores them in-store location. app so customers will was downloaded over quickly.
as quickly as possible”, Users can also see a still need to go onto 180,000 times through-
according to Bunnings product’s specifica- the website or pur- out the [financial] continues next page
Staff and customers (cont.)
without increased risk, workers for managing and Allied Employees the devastating effects could after the end of
such as more seg- a “really challenging” Association, welcomed of drought, bushfires financial year.
mentation of low-risk six months. the payment, which and floods in Austra- Sources: Bunnings media, The
retailing, greater phys- Full-time workers in his union had pushed lia, and on both sides Australian Financial Review,
ical distancing, store stores received $1000 for. But he said the of the Tasman, we’ve The Age, The Australian,
marshals and extended as a “thank you” pay- company should also dealt with the unprec- Weekend Australian and
trading hours. ment, $750 as a bonus give workers a pay rise edented challenges of Inside Retail
and a $250 gift card. and provide coronavi- the COVID-19 pandem-
Bonus payments
The payments applied rus leave to its casual ic.
Prior to the latest proportionally, based workers. Our teams have
restrictions, Bunnings on hours worked, for Mr Schneider said the worked incredibly hard
store staff received casual and part-time company already has to keep our stores open
a “thank you” pay- Bunnings staff. Back a history of rewarding and safe for everyone.
ment of up to $1000 office workers were its team members, and As always, we’re thank-
for keeping its stores given a $500 “thank this year would be ing our team for their
running during the you” payment. no different. He told truly incredible effort,
global pandemic. In Gerard Dwyer, Inside Retail: and will reward them
July, Mr Schneider told national secretary This year, our team in the best way possi-
staff that the company of retail union the has dealt with a num- ble, and we wanted to
wanted to reward its Shop, Distributive ber of challenges with do this as early as we
hnn.bzbig box
update
App development, small houses (cont.)
21
Bunnings New Zealand has built over 100 kit homes under the “affordable” Clever Living Co. homes banner. Pictured is the Angus version.
Project bundles companied by instruc- NZ commercial, Bun- ston North, Gisborne He said kitset and flat-
tional videos. nings, said the 96sqm and Whanganui. pack homes are more
Bunnings has
As part of phone three-bedroom “Angus” Richard Trent of popular as people have
packaged together
ordering for Project design has proved Trent Building in got their heads around
DIY “Bunndles” so
Bunndles, the retailer the most popular kit Christchurch is one the LBP (Licensed
people can do projects
has a dedicated DIY home. He told the of 20 licensed builders Building Practitioner)
at home. “Bunndles”
Hotline service where Waikato Times: of Bunnings’ Clever requirements.
include the tools,
team members provide Individual sites can Living homes. The Sources: IT News, Yahoo News
materials and instruc-
advice for shoppers. vary, but the ‘Angus’ houses are built in his (Australia), 9News, The Latch
tions required to start
The help line allows can be currently sold yard and relocated to and Waikato Times
a DIY project delivered
Bunnings customers to between NZD245K different sites.
to the customer’s door.
call for how-to advice, and NZD260K, exclud- Bunnings does not
Families could work on
as well as information ing site works. This have this market to
the projects together
on products sold in- figure would need to itself as numerous
during lockdown.
store. be confirmed by the small-home builders
Bunnings team mem-
builder as it is based offer similar prod-
ber Brad Darcy told Flat pack homes
on location and other ucts. Marc Hunter of
9News: Since 2017, Bunnings factors. Latitude Homes said
It’s very good for New Zealand has built Mr Bickerton said his company has been
customers who are over 100 kit homes Bunnings is hoping to offering kitset homes
isolating at home and under the “affordable”
grow the number of for many years, with
need to finish some Clever Living Co. licensed builders, each prices that are equally
odd-jobs around the homes banner. As a of whom will soon affordable.
house.” result, it has created have a show home. Mr Hunter said in
Bunnings offers competition for home We’ve seen a growing the past two to three
projects specifically builders at the “entry interest outside of the years, the company
for children like mak- level” or lower end of
Auckland metropolitan has noted that home-
ing dinosaur gardens, the market.
area, especially areas owners are now look-
cardboard towns or Des Bickerton, that are larger in land ing at smaller homes to
creative letter art. All manager – Bunnings size, such as Palmer- better fit their budgets.
the projects are ac-
hnn.bzindie update
TradeTools positioned
for current growth
Founder of
in this Queensland-based
update:
update: retailer TradeTools,
Greg Ford is not afraid
•start to share the wealth. He
text chang-
Acheson’s
es retail banner has over 50 sharehold-
ers and most of them
• Hardware store are his employees.
closures Mr Ford started
• Astley’s Plumb- TradeTools in 1987 to
ing and Hard- create jobs for himself
ware looks to and his father. In 2020,
another century there is a workforce
22 of trading of 240 people across 18
A TradeTools store in Burleigh Heads (QLD) staff are benefitting
stores located across
• WA-based Mitre we just drained all the Ford does not antic- from the surge in de-
10 store uses the state from Tweed mand. He told Smart-
Heads to Cairns. There money out of tourism ... ipate any problem
solar because no one is going retaining them. Tra- Company in a separate
is also an outlet in
• Port Lincoln Mitre Vanuatu and another anywhere. deTools paid a weekly interview:
10 supports If we manage to commission based on I don’t pay myself a
Queensland store in multimillion-dollar
tradies’ health Browns Plains due to average our current turnover and provides
turnover through the the opportunity for salary, I don’t need it.
• Dunsborough open later this year.
rest of the year, we are staff to become share- The big corporates
Mitre 10 turning The global pandemic have never been able to
into Sapphire has accelerated growth going to be looking holders after 10 years
get into the specialised
store for the retailer and at $160 million, $170 of service.
end of the tool indus-
has employed almost million turnover. Mr Ford credits this
• Tools specialist, Mr Ford said sales profit-sharing initia- try [due to a] lack of
TradeTools is em- 30 new staff to cater expertise.
for the unprecedented could have been even tive with helping the
blematic of retail higher if there was business to thrive (Many HNN readers
independence increase. About 10-12%
more stock to sell. The before and during the are already aware that
of sales came from on- Bunnings and Metcash
line. Mr Ford told The company was expect- coronavirus crisis.
ing 76 containers to be With an average staff have acquired once-in-
Courier Mail: dependent brands
We’re a little bit re- delivered at its head retention rate of eight
luctant to admit it but office in Stapylton on years, TradeTools staff Adelaide Tools and
the Gold Coast in July. are experts in their Total Tools.)
we have had a massive The business owner
craft — a point of
increase in turnover … Profit sharing said anyone asking to
We had one quiet week difference that he be-
Having enough lieves any competitor buy his company gets
when COVID hit and the same answer: “Not
trained workers and would be hard-pressed
then it went whoosh on your life.”
keeping stock on the to replicate.
and it has never Mr Ford is British
shelves have been the While the remunera-
stopped. It’s nuts.
two biggest challenges tion of workers across born, grew up in Eu-
Every store has gone
the company has faced the country has come rope and has lived in
up and our figures are the United States. He
in recent months. under pressure amid
currently 60% above
what they were this
It will take a couple the COVID-19 pandem- has seen what happens
of years to fully train ic, many of Mr Ford’s continues next page
time last year … I think
new workers but Mr
hnn.bzindie
update
A year of challenges for WA store
Trent and Kristin through treatment and ough store under-
Wilson, owners of a second bone marrow went a renovation.
Dunsborough Mitre 10 transplant. The smoke
in WA, are rebuilding Mr Wilson said, in a inside the build-
their store after a fire way, the fire felt like ing destroyed
earlier this year. A a blessing in disguise everything, even
good Samaritan who because he was able to though the fire
was driving by the spend more time with was out within 30
store and the owner of his family during the minutes and only
a neighbouring gym COVID-19 pandemic. contained to the
alerted the fire brigade He told the Dunsbor- front counter. It
but not before the ough Mail: was amazing how
entire shop front was I had to self-isolate much damage was
burnt out and the rest before I came up to see done to the entire
of the store and stock Blake because he is im- store, we lost all Group, they have and had to start from
damaged by smoke. mune deficient … While the stock and shelving, streamlined everything scratch, it was a perfect
Since then, it has we are going through the mezzanine level and do all the data time to implement this
been undergoing this, I am trying to keep upstairs was all gone crunching. They look into my store.
extensive repairs an eye on my business which had to be rebuilt at what products are Source: Dunsborough Mail
after being gutted. As while it goes through a and repainted. the best sellers, what
the store was being rebuild, which has been Mr Wilson is pre- moves, how things are
23 repaired, it gave Mr very slow but we are paring to reopen his merchandised, the floor
Wilson a chance to getting there. store in late September plan and how things
be with his family in Mr Wilson said Mitre with a fresh look (ie. flow throughout the
Perth while son Blake, 10 had been a great Sapphire). He said: store. I am in a fortu-
who has been fighting support to his family It is a new concept nate position now be-
leukemia, was going while the Dunsbor- within the Mitre 10 cause I lost everything
TradeTools growth (cont.)
philosophy able to sleep soundly at TradeTools stocks its
continue to night. He said: own range of locally
expand. We spread the wealth made private-label
I don’t want around and everyone tools called Renegade
Bunnings to be benefits. I cannot un- Industrial. He said:
the only hard- derstand why others, I’ve always thought
ware company especially in the higher we should produce
in Australia … echelons of business in more of our own prod-
it’s the whole Australia, just can’t see ucts here. When I came
point of Trade- that. to Australia 47 years
Tools. It allows you to sleep ago many things were
But beyond at night knowing made in Australia, I’ve
this, Mr Ford your employees aren’t been sorry to see that
wants more continually looking for so many things are
TradeTools manufactures its own range of air compressors in Queensland independent a new job, and it allows now made overseas.
business own- you to be more trust- Sources: SmartCompany and
when independent run the country. That’s ers to adopt prof- ing of the people who The Courier Mail
companies fold in the what we see in the it-sharing initiatives work for you because
face of large businesses States and Europe. with their workers, they’re taking part in
en masse and believes Companies like Trade- saying there is a range the profitability of the
it’s not pretty. He said: Tools can be privately of benefits to sharing, business.
I’ve seen what hap- owned and have a whether that’s aligning Mr Ford also sees
pens when you basi- strong, engaged work- incentives to promote a need to expand
cally let corporations force. I want to see that success or just being local manufacturing.
hnn.bzindie
update
Tradie health gets support in Port Lincoln
Hardware stores which provide free
around Australia are online training to
known for their ongo- increase people’s con-
ing support of tradies. fidence in discussing
During Tradies Na- suicide.
tional Health Month Mitre 10 Port Lincoln
in August, Mitre Port owner Fiona Rosalia
Lincoln in SA held a said many tradies in
few breakfast events Port Lincoln support-
to help promote good ed the store, so it felt
physical and mental appropriate to give
health among tradies. something back. She
Tradies were invited said the staff always that affect their mental Tradies National COVID-19 restrictions.
to enjoy breakfast as had an open ear for health, our doors are Health Month high- It contains links to on-
well as gain informa- tradies who came into always open to work lights the health and line support resources,
tion from local organ- the store, especially through it. injury risks faced by as well as tips on sup-
isations Mentally Fit during the uncertain A lot are flat strap at tradies across Aus- porting loved ones and
EP, EP Physio Plus and times being experi- the moment, but that tralia and how it can for tradies to take care
Life Club about im- enced at the moment creates pressure on affect them, their fami- of their own mental
proving their mental due to COVID-19. She another level. It’s about lies, employers and the health.
and physical health. told the Port Lincoln having staff there that community. Sources:
24 Mentally Fit EP Times: are willing to listen. Earlier the year, https://bit.ly/2ZGth8G
provided informa- We try to have a good Mrs Rosalia said HALT (Hope Assis- https://bit.ly/3klt2rC
tion about programs relationship with all Mitre 10 planned to tance Local Tradies)
including LivingWorks our tradies so if there’s hold another breakfast put together a 4-page
and QPR (Question, issues going on, finan- in September for R U tool kit for getting
Persuade and Refer) cial as well as others OK Day. through the initial
Mitre 10 store goes off the grid for business
tem in action, director John David- Kimberley.
said he was son said the company Prior to founding
impressed by was very pleased to Generators & Off-Grid
what he saw help Mitre 10 with the Energy in 2017, Mr
and hailed innovative project and Davidson established
Broome as thank them for their EMC Solar Limited
the “birth- vision. (EMC) in 2004 to de-
place of en- This project will be velop and deploy solar
ergy democ- the first of many of this opportunities across
racy”. He told type in regional Austra- Australia. EMC was
the Broome lia where power prices purchased by ASX’s
Advertiser: are in some cases lim- Carnegie Clean Energy
We know iting regional projects in 2016.
Streeter and Male back-up generator to that Broome and growth. Source: Broome Advertiser
Mitre 10 has become allow the business to and the Kimberley According to its
the first Broome (WA) generate and store its suffer from high cost website, Generators
business to utilise a electrical requirements structures, so anything and Off-Grid Energy
large-scale commercial from solar, effectively to reduce the cost of are specialist solar
off-grid power system taking themselves off doing business in the battery engineers, de-
that was developed the grid and reducing Kimberley is something signers and installers.
locally by Generators power costs. that should be wel- It employs local staff
and Off-Grid Energy. Senator Dean Smith, comed. and creates energy
It comprises of solar who visited the store Generators and Off- solutions that meet the
batteries with a diesel to see the off-grid sys- Grid Energy managing tough conditions in the
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