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Why Aussies love shopping at Bunnings
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Why do we love Bunnings even though it monopolised the hardware industry?

Bunnings is one of Australia’s most beloved brands, but it is also a retail giant that has effectively monopolised the hardware sector. 

The company, which started as a sawmill in Western Australia in 1907, now boasts over 300 locations across Australia and New Zealand and reported a massive $19 billion in revenue for 2024. 

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So, why does Bunnings get a free pass when other major Australian businesses like Coles, Woolworths, and Qantas face regular backlash for their market power?

On Friday morning’s two-part series of The Briefing, host Sacha Barbour Gatt explores the issue with consumer expert Joel Gibson, and in part two, she sits down with Bunnings Managing Director, Mike Schneider, for his take.

For many Australians, a trip to Bunnings is not  just about shopping, but an experience. 

The iconic sausage sizzle, the expansive range of products, and the sense of community involvement all contribute to its favourable image. 

Gibson argues that Bunnings’ popularity is not just the result of good customer service but also of strategic marketing and a carefully crafted public image.

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“We probably have a bit of a contest between the major parties to see who can be tougher on the supermarkets in this election. Bunnings, on the other hand, which essentially has a monopoly over hardware in Australia, hasn’t had a peep about the effect it’s had on market power here,” Gibson said.

However, Bunnings’ pricing practices, including its “we’ll beat any price by 10 per cent” guarantee, and exclusive products not available elsewhere, raise questions about whether its market dominance is fair. 

“There are probably some customers that are shopping with us because they may not feel they’ve got another option. But certainly from the conversations we have, the customer research that we do, it’s really clear that our really deep commitment over three decades to lowest prices for our customers has built a lot of trust,” Schneider responded.

“We’ve got a very deep connection to the community…we’ve been really good over the years at bringing community groups into our stores.”

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