In This Issue
Wyevale Garden Centres announces shift away from acquisitions
Meadow View Stone unveil a new customer experience
Nicholas Marshall joins HTA Garden Futures Conference 2017 line-up
Area Sales Manager wanted by History and Heraldry Group
Paul Hansord and Neil Sharpe to retire from T&M
Aussie analyst questions Bunnings UK trading model
Sales volumes up for fifth week in a row
Garden supplier's £4.5m investment in Ashford
Industry high after thriving annual Glee exhibition
New look gift department at Bents
Haskins raise £6,500 to pay for puppy's assistance dog training
Zest power duo take on Ironman Wales for charity
Product Merchandisers (Full-Time)
Marketing and Communications Officer
Get your own copy of GTN Xtra
Pansies are most popular plant of the autumn season
Garden product stalwart Tony Dedman retires after 48 years
A Glee-full week for Greenfingers Charity
Cutting time for garden products
Bohemian and hippy chic is an outdoor trend says e-tailer
Sales of onion sets are electric
Woodlodge pair raise over £2,000 by skydiving for Greenfingers
Pots of bulb compost sales
CIH Dublin conference to focus on how horticulture impacts health
We need gardens to help us 'live more like cavemen' suggests top archaeologist
Bestsellers Top 50 charts every week
Buy your subscription to GTN Bestsellers
All the latest news from the world of garden centre catering
The pies have it - new suppliers found at Lunch!
New trade show will demonstrate how to cater for vegans
Situations Vacant
Area Sales Manager wanted by History and Heraldry Group
The History and Heraldry Group are recruiting an Area Sales Manager for the Kent, Sussex, Surrey, and Hants region. A competitive basic salary plus car/allowance is being offered...
Read more»
Product Merchandisers (Full-Time)
Salary: £22,500+
Read more»
Marketing and Communications Officer
Greenfingers Charity has a really exciting opportunity for a passionate Marketing and Comms professional...
Read more»
Send us your news and great ideas

Contact us with your news. 

Email, or or call the GTN News team on 01733 775700

Aussie analyst questions Bunnings UK trading model

The following article in the Australian Hardware Journal offers an alternative perspective on the troubles facing Bunnings as they attempt to change the trading model of their Homebase chain


It seems the European hardware industry has become even more tumultuous, after recent news that the UK's big green box has reported an $89 million loss in its first full financial year - since the acquisition of UK chain, Homebase.


Wesfarmers executives were recently asked questions about the dismal performance of the UK and Ireland business, with Merrill Lynch analyst, David Errington, describing it as a “big loss”, and questioning the strategy of moving Homebase stores from a promotional to an everyday low pricing model. 


“The whole UK market is a promotional market. You're going to try to convert the market to non-promotional – that is a real worry. What's the risk they turn into a real disaster? You guys were pretty aggressive saying (Bunnings UK and Ireland) wasn't going to lose money. Where is this business going to go?" Mr Errington said in a recent report.


Although he agreed that there is a risk in doing this, Bunnings Group Managing Director, Michael Schneider also pointed out that in 1994, the Australian retail landscape was similarly based on a “"high-low” promotional strategy, until Bunnings “came along and introduced EDLP” (every day low pricing)


"It's going to be a long slog, but what we're seeing in the Bunnings pilots is that they are performing well. When they (the UK consumer) see what EDLP is, they (will) trust it," Mr Schneider said in the report.

Facebook Twitter LinkedIn Digg | Comment (0)

Email Address:*