Bunnings

In 1886, brothers Arthur and Robert Bunning left London to settle in Perth, and soon gained a government building contract, which led to the founding of a group of building companies which later became Bunning Bros Pty Ltd. They purchased their first sawmill the following year in the south west of Western Australia,[7] and over the next few years, they concentrated more on sawmilling and timber distribution and less on building.[8]

The company expanded to include several new mills around Western Australia. In 1952, Bunnings became a public company, expanded into retailing and purchased several hardware stores.[8] In 1970, Bunnings bought the merchandising and sawmilling operations of Hawker Siddeley. In 1983, it bought out Millars Timber & Trading Company and, in 1990, the Alco Handyman hardware operations.[9] In 1993, Bunnings bought a company that operated Harry's and Lloyd's in South Australia, Campbell's in Queensland, and McEwans in Victoria and New South Wales. (This company had been spun off from Harris Scarfe in 1989). Many of the stores acquired were subsequently closed, with only the best-performing sites being retained.

Bunnings Warehouse interior

Bunnings Limited was bought out by Wesfarmers in 1994.[10] In late-1995, the 'Red Hammer' symbol was introduced and is still in use today. In June 1996, the company's trademark slogan "Lowest Prices Are Just The Beginning" was introduced. In February 2020, the company discontinued the use of the slogan in Australia. New Zealand ads and stores continue to use the slogan at present.[11]

After the acquisition, the first Bunnings Warehouse was opened in the Melbourne suburb of Sunshine by Victorian premier Jeff Kennett; Richard Karn, who played Al Borland on the show television show Home Improvement; and Joe Boros, the managing director of Bunnings. This was quickly followed by three other Melbourne stores. Subsequently, new warehouses have been opened, on average, every three months across Australia. Development in Sydney and Brisbane proved more difficult than in other areas, as large blocks of land in the metropolitan area were limited.

In 1997, the remaining smaller-format McEwans stores were renamed Bunnings.

A Bunnings Warehouse store in Edgewater, Western Australia

Bunnings Warehouse, Christchurch, New Zealand

In August 2001, Wesfarmers bought the Howard Smith Group, including BBC Hardware (previously Nock & Kirby) and big-box offshoot Hardwarehouse. This supplemented the Bunnings national network by several dozen stores, many of them large Hardwarehouse stores in Sydney, Brisbane and New Zealand. Hardwarehouse had been dominant in New South Wales and Queensland, but the purchase complemented Bunnings' prior domination in Victoria, where Hardwarehouse had only seven stores to Bunnings' twenty at the time of the buy-out. At the time of purchase, the market leader was Mitre 10 with a 12% market share, but the inclusion of the Hardwarehouse and BBC Hardware stores brought Bunnings market share to 13.5%.[12]

A Bunnings Warehouse store in South Burnie, Tasmania

Hardwarehouse and BBC Hardware stores retained their branding for a year, while television advertisements were tagged with each of Bunnings Warehouse, Hardwarehouse and BBC Hardware during this transition period. Lower-volume stores were closed and, in 2002, the remaining Hardwarehouses were renamed Bunnings Warehouse.[13]

The Howard Smith Group purchase also included Benchmark Building Supplies, a New Zealand chain of 32 stores, including nine Auckland stores. These were also closed or rebranded as Bunnings by 2003.[13][14][15] Until then, Bunnings had just three New Zealand stores.[16][15] By 2008, it had 14 large warehouse stores in the country.[17][16]

From 2004 to 2008, Bunnings purchased and re-branded Mitre 10 stores in Griffith, Kempsey, Randwick and Wodonga, Magnet Mart in Griffith and a Mitre 10 Mega store in Modbury. In 2008 the Australian Competition & Consumer Commission (ACCC) looked into its acquisitions of five Mitre 10 stores, as it deemed the purchases would be anti-competitive. In February 2009, the ACCC allowed the purchases, finding that the acquisition of the Mitre 10 stores did not significantly alter the level of competition in the relevant market.[18]

Over time, some smaller-format Bunnings stores have gradually been closed. However, six new stores were opened in Victoria in 2015, mainly in smaller regional markets and inner-suburban areas.[19]

Michael Schneider was appointed Managing Director, Bunnings Group in May 2017 following his appointment as Managing Director, Bunnings Australia & New Zealand in March 2016.[20]

In mid-May 2020, Bunnings announced it would close seven stores in New Zealand in Ashburton, Hornby, Hastings, Cambridge, Rangiora, Te Awamutu, and Putāruru with the loss of 145 jobs as a result of the global COVID-19 pandemic.[21][22] This left Bunnings with 41 New Zealand stores, including 12 in Auckland.[23]

In Australia, Bunnings unsuccessfully lobbied the Victorian state government to exempt its 168 stores from closure during the second Melbourne lockdown.[24] However the company was allowed to continue fulfilling online orders, and subsequently its online business expanded and grew due to continuing demand despite various periods of restrictions around the country.[25]

In 2021 the ACCC ruled that the purchase of Beaumont Tiles outlets would not reduce competition as Bunnings was not currently in the field in a big way. Bunnings has said it will continue to run Beaumont Tiles the way it has been and with the same management team.

In November 2021, both Bunnings and Officeworks partnered with the Flybuys Loyalty program to allow customers to collect points at both stores.[26]

On weekends (and weekdays at some sites), Bunnings outlets regularly host sausage sizzles and cake stalls for community groups and causes.[28] It has become an intrinsic part of the Bunnings Warehouse brand, and iconic in Australian culture.[29]

In 2018, chief operating officer Debbie Poole sparked a public debate when she suggested "onion be placed underneath sausages to help prevent the onion from falling out and creating a slipping hazard”. She insisted it would not "impact the delicious taste or great feeling you get when supporting your local community group".[30]