In This Issue
Grange win again at GIMA Golf Day
Sharp shooting and sixes at GIMA Cricket and Laser Clay Shooting event
Bunnings Warehouse opens new store in Hemel Hempstead - making it three in the UK so far
Bunnings says roll-out will pivot on how well pilot stores perform
Total sales volumes up for first time since Easter
GCA announces dates and venues for regional award meetings
Notcutts Wheatcroft unveils spectacular Display Garden
Weber invests in seven-figure TV advertising campaign
Westland winner donates part of his prize to grandchildren’s school
Houseplants for 2018 have been announced
Development plans for East Durahm GC approved
Bents new signs aim to make bathroom access easier for customers with 'invisible illnesses'
Mercers to open third Hillmount garden centre in former church
Westland report profits of £2.9m
GIMA praises Perennial’s ‘Play the Pitch’ football fundraiser
East Sussex garden and nursery sold to private buyer
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Comedian Hal Cruttenden to host GIMA Awards
Feed, weed and support products selling well
Tomato plant sales are thriving
Boost for organic growing media products
Summer bedding dominates plant sales
Bord na Mona's Pro 5 peat composts beat sales target
John Lewis and Waitrose report strong garden and outdoor leisure sales
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Bunnings says roll-out will pivot on how well pilot stores perform

Bunnings, Homebase’s Australian owners, made it clear in a strategy briefing last week, that the further roll-out of the Bunnings brand in the UK is entirely dependent on the success of its pilot stores.

The company has re-branded three Homebase outlets to date – two in St Albans, both reported to be trading well, and one in Hemel Hempstead,  – and plans seven more by the end of this year. The next one is due to open at Milton Keynes later this month, with Folkestone and Sittingbourne in the pipeline.

But the MD of parent company Wesfarmers, Richard Goyder, said Bunnings had experienced “significant disruption across all areas of the business” since it acquiring the 255-store Homebase chain in January 2016, with May trading failing to make up for losses caused by lousy weather in previous months. He expected losses to continue through the rest of the year and the first half of 2018.

April, May and June were important trading months, particularly thanks to gardening, and profitability would be below expectations.

He also said a staffing issue could limit the roll-out of new stores after this year’s pilots. Under-investment in people by Homebase’s previous owners meant changes had taken longer.

Goyder said the further roll-out would go ahead if the pilots showed return on capital, good customer numbers, good sales, good margins and correct operating costs. Successful pilots were an “absolute precursor to further investment”.

Accordiong to the Sydney Morning Herald, Bunnings UK and Ireland losses in the first half of the financial year were $48 million, with no guarantee from the MD of a profitable second half. Analysts understood that the repositioning of the kitchen and bathroom offers had dragged back sales and profits.

 

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