HINEWS METCASH FY2017/18 - BUNNINGS, REECE, SAMIOS, LINKWARE INTERNATIONAL - Hardware News Network
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HI
METCASH FY2017/18
PLUMBING:
BUNNINGS, REECE, SAMIOS,
LINKWARE INTERNATIONAL
NEWS
Vol. 4 No. 5
WESFARMERS
STRATEGY DAY:
BUNNINGS
GOES
SHOPPING
FOR
TRADIES
TIME TO INVEST IN RETAIL, NOW!
contents
HI NEWS VOL 4 NO 5
Wesfarmers Strategy Day Metcash FY2017/18
Wesfarmers held its Strategy Day in early June 2018. The company’s MD, Metcash’s overall results were poor due
Rob Scott, said a final farewell to Bunnings UK & Ireland, then ushered to the need to write-down operations
in a new move towards data analytics. Post the divestment of Coles, the after losing significant customers in its
company is to focus on high return investments. Bunnings MD, Michael food business. Hardware, led by the Inde-
Schneider, outlined areas of growth for the big-box home improvement pendent Hardware Group, put in a good
retailer, with an emphasis on growing its trade business, but also improv- performance, with a big boost in EBIT,
ing seasonal ranging, adding services, utilising digital/internet better, leading the company’s liquor division,
and expanding in storage and smarthome products. Bunnings will utilise despite the latter’s high level of sales.
34 29
data sources such as its PowerPass loyalty card to drive future Continued growth of Sapphire
progress. program stores is expected.
Plumbing opens the data pipe Time to invest
Plumbing is set to be a big focus for the rest of 2018. Reece Group has While Australia’s economy promises
acquired US company MORSCO, and HNN speculates this may have some- higher levels of growth in the coming fi-
thing to do with the company expanding its data analytics capability. nancial year, wages growth and business
Bunnings is rumoured to be introducing a new range of plumbing in the investment continue to lag. The latter,
fourth calendar quarter. Meanwhile, Samios continues to grow, and has HNN suggests, could be in large part due
developed trade-oriented showrooms to boost its sales. Linkware Interna- to the fear that digital disruption will
tional has developed an advanced hang-sell and window box packaging render investment less useful. None-
system, which makes it easier for DIYers to self service in-store. theless, with data analytics gearing up
52 75
at Wesfarmers and elsewhere,
now is the time to invest.
People: Steve Fatileh
Steve Fatileh, group buying manager for the Hardware
& Building Traders (HBT), is sometimes referred to as
“Mr H” for all the hard work he has put into the buying
group’s H branded stores. Steve tells us the story of
how H evolved from being just a store design choice,
into a way to better bond store owners with key suppli-
ers, to the benefit of both.
10 9
contents
Stats: Houzz surveys COMMENT
Online home design social site Houzz offers some Data analytics has the potential to change
insights into what Australians are doing with the home improvement industry as much
renovations in a series of surveys of both consumers as advanced logistics did in the early 2000s.
and industry professionals. Things are looking up for If independent hardware retailers are
the professions. Design trends remain fairly stable, going to cope with this change better than
though showers continue to expand as a category in they did the last one, and retain reasonable
bathrooms. marketshare, they need to start acting
soon. One place to start is by looking at
supplier relations not through the prism
of price, but by taking account of value
6
delivered.
15
Home Improvement
News is a publication of
Net Percent Pty Ltd. big box update...........................................................16
© 2018 Net Percent Pty Ltd
indie update................................................................20
Betty Tanddo
publisher supplier update..........................................................24
betty@hnn.bz
0411 031 832 usa update..................................................................87
Scott Lewis europe update............................................................92
editor-at-large
scott@hnn.bz news............................................................................95
HI
NEWS
WHAT THE PRO’S READ
NEWS/ANALYSIS hnn.bz
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comment
It’s unusual to find that, as an issue of HI News
develops, most of the feature articles seem to be
pointing in the same direction — but that is ex-
actly what did occur with this current issue. We
didn’t begin with an overall theme in mind, but
that is what we ended up with.
Wesfarmers’ closing of its Bunnings UK and Ireland operations
(BUKI), and its move to invest heavily in data analytics, as revealed
in our coverage of the company’s June Strategy Day Briefing, is
likely to end up as one of the landmarks in retail industry develop-
ment.
Our research into the acquisition by Australia’s favourite
high-quality bathroom and plumbing company, Reece Group, of
the US company MORSCO, turned up something curious and
interesting: could Reece have bought MORSCO in part to boost its
own data analytics capacity? We can only speculate about this, of
course, as Reece is well-known for running its operations in secre-
6
cy. We’ll have to wait another two or three years to know if we’ve
guessed correctly, but it is the sort of well thought-out, well-ex-
ecuted strategy that we’ve come to expect from Reece over the
years.
It seemed to be sheerest coincidence that we had already begun
to write a strategic article on business investment in retail for this
issue as well. Our economic analysis is that one reason investment
has remained at historically low levels of growth is due to un-
certainty over whether (or even just when) retail will be digitally
disrupted.
Reflecting on all these coincidences, we really do have to wonder
if retail, and particularly home improvement retail, might have
reached an inflection point during 2018, and that we might expect
to see more investment in technology emerge during FY2018/19.
Our fear, which is echoed by some speeches by the leaders of the
Reserve Bank of Australia, is that this kind of investment will end
up advantaging larger companies over smaller ones.
We saw that happen with investment in logistics during the
early 2000s, and this led directly to the dominance of Bunnings in
the Australian market. While at that time it was the ability of Wes-
farmers to deploy large amounts of capital that contributed to its
rapid growth in marketshare, technology is really as much about
culture as it is capital. That means smaller companies can play on
near equal terms with larger companies, if they are smart about
what they do.
hnn.bz
The question looming over the independent hardware retail in-
dustry is whether they can become smart about these things. One
major shift that needs to happen, HNN believes, is for retailers to
shift their thinking about supplier relationships from direct cost
benefits, to total value obtained. Suppliers could move into the po-
sition of providing equivalent data analytics to the independents,
if retailers could develop a data format — and the willingness — to
share more customer data with suppliers.
The thing is, while the full effect of what data analytics will
bring will take three years to be fully understood, independents re-
ally need to start acting now. Otherwise, with Bunnings now likely
to increase its annual take of the trade market by $1 billion within
three years, there are going to be a lot more independent hardware
store failures, and a general decline in the value of some long-held
ventures.
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because we analyse the downloads every week.
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need. We can put an exact number on engagement.
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people
Steve Fatileh, HBT
name:
name:
Steve Fatileh has become
• Steve Fatileh
very much “Mr H”, when
products: it comes to his work with
•company:
Hardware and Building
•online:
Hardware & Traders (HBT) as a group
• Building Traders buying manager.
social: While he has been responsi-
role:
• ble for securing a wide range
• Group buying of suppliers for the overall
email:
manager buying group, there’s no secret
•
9 to the fact that he has helped
start text
online: to nurture the group’s once
static H brand from just 13
• hbt.net.au stores, to 28 active stores, with
another 14 in various stages of
transition.
location:
In the 12 months to June 2018
• Melbourne, VIC alone, eight stores completed
the changeover.
In an industry that has a
pressing need for innovation
and innovators, Steve has
helped to shape the begin-
nings of a brand presence for
an independent buying group.
Beginnings Steve Fatileh, left, alongside Chris Moorfoot, owner of H Hardware,
Yarra Junction, attending an HBT executive meeting in 2018.
Steve had a slight premonition even be- Steve followed up by asking what the ad-
fore he officially started working for HBT back vantages were for members who signed up
in early 2015 that the H part of the business for the H branding. The answer was that, well,
might attract his interest. the stores certainly looked good, with strong
At the second meeting he had with the Aus- colours and a workable design. But at the time,
tralia-wide buying group, the subject of the in terms of anything material beyond their
group’s H Hardware branded stores had come appearance, H stores did not get any extras.
up. Speaking to the HBT managers and senior Afterwards, walking away from a meeting that
members of the group who were interviewing had ranged over many topics, Steve found his
him, Steve started asking questions. thoughts returning to the H stores. He thought
He first asked what HBT was currently doing that, if he accepted this role with HBT, he might
with the H stores. The answer was, at that time, consider seeing what he could do with H.
very little. The 13 H Hardware stores signed up It was a modest ambition. He had no idea that
were the same 13 that had signed on five years it would soon become, in less than a year, some-
before. thing of a driving obsession for him.
hnn.bz
people
First steps
With a strong background as a category man-
ager for Clark Rubber, which is a strict franchise
operation, it took Steve a little while at first to
acclimatise himself to a buying group that was
made up of a collection of opinionated, widely
varying individuals, who were free to sign on to
deals if that suited them, or go their own way if
it did not. While he respected that attitude, he
was also aware that there were gains to be made
if like minds could get together.
What triggered my interest in the H brand
straight away is that part of my role is to benefit
the stores and see what I can do for them. I
thought immediately that if we have some com-
monality between some stores, there would be
more we could do for them as a collective group.
Part of what reinforced that thinking was his
first exposure to the H Hardware stores that
were then operating.
The first HBT store I went to was Cameron’s H
10 Hardware store [in Bateman’s Bay, NSW]. Like
anything, the first impression you get lasts with
The history of the Yarra Junction store in four pictures. Top,
the store as it was around 1943. Middle top, a painting of
the store before Chris Moorfoot bought it, kitted out as a
Thrifty-Link, and, dating from between 2002 and 2005.
Middle bottom, the store as it was in 2015, under Mr
Moorfoot’s ownership. Bottom, the store transformed by
H Hardware branding in mid-2017. The store has seen its
sales performance considerably enhanced by its move to H
Hardware branding.
hnn.bzpeople
you the longest. So that became the future. That led him to develop
sort of benchmark for me. I went two key questions that would end
and saw one of our best stores up determining the future of the
straight off. Later, I saw other H brand stores. In the end, it all
stores, which were good, but didn’t came down to a matter of costs
quite reach that level of excellence. and benefits.
So in my mind there was the ques- The first question was “Why?”
tion: Why couldn’t all our stores be Why would anyone want to go
more like the very best stores? through the transition to an H
Steve still remembers that first Hardware store? What were the
encounter with Cameron’s. benefits, and how would they be
There was a professional feel to delivered?
the store straight away. The work- The second question he devel-
ers were all in uniform. There was oped was about the raw costs of
good signage, and there was good doing the conversion, and the
direction, if you wanted to look amount of time it would take up
for something. Everything was for retailers. The transition period
clearly marked with signs. Each itself would affect the business,
product had its own area, and each then on top of that were the costs
category had its own area, and it of the raw materials to make the
was all well-planned. The people change, the cost of installation,
that I spoke to, the staff, were well and the sheer amount of time
11 informed about the products. So, required for the staff and owner to
yeah, straight away you got that implement the changeover.
sense of professionals. So that It was by coming up with an
would that would probably be the answer to the second question
store that captivated me at the that Steve ended up solving the
beginning. first as well. That answer came to
If he wanted to work on H Hard- Steve as a result of a “thinktank”
ware, the first thing Steve had to session HBT held in 2016. HBT had
do was to get management buy-in. yet to develop its “key suppliers”,
Fortunately, the group manager but they had brought in some of
at the time, the late Tim Starkey, the major suppliers to the group
was known for his encouraging for a chat.
management style. We talked about H Hardware
There was certainly a plan behind and one of the suppliers asked us:
H Hardware in those early days, “Why aren’t you guys pushing this?
and it was my own plan, one that I Do you realise we will get behind
put forward. The first thing I had it if you do?” I think that even the
to do was to convince Tim it would suppliers felt that they wanted
be worth it, as a lot of my time another player in the market.
would go into building the brand. Straightaway then, you know,
Tim was the kind of manager who it was a bit of a light bulb mo-
backed you. He just said something ment for me. I said well that can
along the lines of: “Yeah see how eliminate our cost issue with the
you go. If you think that’s the way conversions to H Hardware. If the
to do it, see how you go doing it suppliers were willing to back it up,
your way.” And, you know, if you let’s get them to support the stores
succeed, well done, if you fail — and finance some of it or assist in
well, they’ll come and talk to you! contributing to the fitout cost of
Steve started out first with the paint, the signs, and so forth.
research, getting some numbers Of course, for that kind of deal to
to back up what his intuition was work out, there needed to be some-
telling him about the status of the thing in return for the suppliers,
brand, and its potential for the as well. Branding at the Inverell H Hardware in New South Wales.
hnn.bzpeople
In return, if the member agrees group buying manager], he took
to receive help with the fitout, theyon ITT [Industrial & Tool Traders]
then commit to that supplier to be as a pet project. Tim and Gavin
their main supplier in that catego- were then really busy getting new
ry. In most cases, that supplier is members to come on board.
already dealing with that member Duralex long had this idea, and
and is already their predominant they left it with Tim, so it was sit-
supplier. But it gives the supplier ting there on the shelf. Some time
security, knowing they are locked after I came onboard Tim just said
in. one day: “Hey Steve, look at this for
Hardware retailers are a little us, will you?” So that was where
unique in that they tend to need the idea for a branded paint came
individual premises, often on a from.
large piece of land, with both a We had to refine it. We also had
main building and sub-buildings to go to market as well, and see if
they have to maintain. Changing other paint manufacturers were
all that to a new brand is expen- interested, because Duralex were
sive and difficult. The result of theonly a smaller supplier to HBT at
deals with suppliers over items the time. They had a good reputa-
such as paint can mean that the tion for the quality of what they
new brand fitout costs even less did. They didn’t have that many
than the standard capex allocated accounts with us, and we were con-
12 to the major maintenance stores cerned if they would be able to keep
do every four to six years. up with the supply and availability.
As a natural consequence of But we found Duralex really
these arrangements, Steve worked wanted to invest in HBT and
out what the special benefits invest in the concept of the paint
would be for members who con- itself. While other companies were
verted to H Hardware. These, too, interested, Duralex were willing to
would come from the suppliers, go all out on this project. It was a
and help to further enhance their slight risk, but one we were keen to
relationship with H Hardware take. It also meant that from 2016
stores. to 2017, Duralex have seen their
order numbers with HBT grow by a
Second stage: branded very high percentage. So, yeah, it’s
products a good story. It worked out well for
everyone.
While these answers to the initial After the paint launched, with
questions helped to spur the first its distinctive “H” branding, HBT
stage of development of the H turned its attention to a range of
Hardware stores, Steve knew he other products as well. One of the
had to go further still to drive the major coups was to launch an H
brand to the next stage of its de- branded version of Soudal silicone
velopment. That next step turned products, along with others such
out to be the development of “H” as tape measures, paint brushes,
branded products, for sale through and even door handles.
all HBT member stores. Managing that kind of program,
The lead product Steve chose to Steve explains, is very much a mat-
work on was paint. Partly that was ter of focusing on quality.
inspired by a slightly neglected With all the H branded products,
offer that had come the way of Mr if you have a look who they are,
Starkey some time before. they’re all reputable suppliers that H branded products introduced in mid-2017. Top, a tape
measure, middle, the slide that introduced the Soudal
The paint deal was sitting there we chose. When we go through the
silicone H branded products, and bottom, the Haymes line
for a while, because after Gavin process of picking a supplier, we of H branded timber stains.
[Keane] took up his position [as pick the product first.
hnn.bzpeople
Finding quality products needs So I think it has benefited us by
a quality process, so HBT came up putting our name out there, show-
with the idea of an “H” commit- ing that we’re a player in the mar-
tee to help it develop this line of ket, and also it’s benefited suppliers
business. who want to be involved and want
After we had developed a couple their products in our catalogues.
of the products, we then formed It’s a demand situation. If a sup-
the H committee. Our committee plier sees their competitor in there
decides what products we should and they’re not, they’re coming to
look at as candidates for exclusive the party by giving us better deals
H products. We invite sometimes and better specials to be in the cat-
three or four submissions, though alogue. So the benefit extends even
when we start, we already a good beyond marketing.
sense of which suppliers would Keen to find other cost-effec-
likely work out best. tive channels, the H brand has
For the most part, the suppliers launched a presence in Shop A
that we choose must have a very Docket at targeted Woolworths
good relationship with the HBT stores as well. For example, in the
team, HBT members, and have a northern Melbourne exurban
lot of accounts across the group. suburb of Whittlesea, both the
We always look for equal or better local IGA grocer and the local
quality to the product they’re Woolworths store now promote
13 already selling to our members Whittlesea H Hardware through
— but with a price advantage. So shop-a-dockets.
that’s kind of the selection process
for an H product. A building brand
Third stage: marketing This all adds up to what has be-
come a considerable asset not just
With an attractive offer for for HBT, but for the independent
HBT members to move over to H hardware community at large.
Hardware, a deal that made the Steve sees the H brand as offering
transition easier in terms of cost, many independents just the right
and included benefits that would mix of brand presence and power,
accrue to both members and mixed with real choice.
suppliers from participating in So there’s a bit of buoyancy now,
the brand, Steve next turned his there’s a bit of excitement with
attention to the hardest challenge H Hardware. Especially with the
of all: marketing, and generating bigger players in the market, such
brand awareness. as Bunnings, if your business
Steve decided to look to an idea doesn’t stand for something, and
long familiar with hardware retail- there’s not consumer confidence
ers: the print catalogue. that you’re buying well, that you
The reason we did the catalogue are part of a brand or a group, then
was that we don’t have the financ- consumers will think that you’re
ing to do something like television not competitive. They won’t have
advertising. HBT is still gearing the confidence to come to your
up to get digital channels such as store.
social media working. Catalogues
were a reasonable cost, and the Top, part of Duralex’s range of H branded paints, intro-
duced in late 2016. Bottom, front page of the H Hardware
potential for a good return. catalogue released in 2018.
Since doing the catalogues we’ve
had suppliers new and old saying:
“How do we get in there? How do
we promote our products?”
hnn.bzpeople
H Hardware gives you that, it gives you that
brand, that perception that these guys are part
of a bigger picture and that they’re going to be
around for a few more years. Unlike an indepen-
dent with just a very local brand, such as “Bob’s
Hardware Store”.
And yet, as Steve points out, with H Hardware,
the spirit of individuality that runs so strong in
a “Bob’s Hardware Store” is kept alive.
That’s the thing with H Hardware from the
start. There were a couple of concerns by some
people before they joined, such as that they The stores posted a significant increase. That Shop A Docket for
didn’t want to lose that identity. For example, released me from my biggest fear. A lot of them Armstrongs H Hardware
in Tasmania.
with someone like Chris Moorfoot out at Yarra have come on because of the trust they have in
Junction H Hardware, he was worried about the person behind the brand implementation,
the store’s identity. But that is still a very unique in me, you know. So to see that at the end that
store, and uniquely suited to its environment, in they are doing well and have achieved success
one of the real beauty spots of Victoria. These through the brand — I’m just happy.
stores not only keep their name when they con- What’s next? Steve wants to hit a total of 50
vert to H Hardware, they keep that independent stores by the end of 2018. And unless something
spirit. major happens to the industry, HNN is very
The thing that makes Steve the happiest, how- sure he’s going to make his number.
14 ever, about the whole H Hardware enterprise,
is that he is just now seeing the results coming
through for full-year financials at the stores he
has helped steer into H Hardware. And they are
good, very good in fact.
HI
NEWS
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Houzz renovation
surveys
Online style and Looking ahead to at between $10,300 and Benchtop-mounted
in this home improvement 2018, over three-quar- $13,300, and kitchens taps are sought by 42%,
update: services guide Houzz ters predict increased budgeted at between with sink-mounted at
provides a number of revenues, and over $22,600 and $14,600.. 35%.
• Most profes- surveys of its members one-half plan to In terms of how these In wall surface finish-
sionals predict in- which indicate some increase marketing renovators choose es, tiles still dominate,
creased earnings trends in the home im- while taking on larger their tradespeople, 69% with over 80% choos-
for 2018 over provement and renova- projects. Only 4% of regard good reviews ing that option. Tile is
2017. tion markets. These are respondents predicted and recommendations also the most popular
not general surveys, as lower income for the as essential, while 59% for floors, with 74%
• Kitchens are he Houzz members trend year. The main chal- seek those with good preferring them.
most popular towards being better lenge most reported communication and For overall design,
renovations, fol-
off financially, and was an increase in cost organisation skills. contemporary and
lowed by living
15 rooms. more style aware than consciousness by their The top functional modern designs
the general populace, customers, followed by requirement for bath- account for 66% of
• White still dom- however they do pro- customers with what rooms is that they are the market, while
inates in bath- vide a good insight into they would consider easy to clean and disin- traditional bathrooms
rooms, for walls a more active sector. unreasonable expec- fect, with 65% choosing are popular with only
and benchtops. The most recently tations for what they this priority. Over 30% 6%. White is by far the
• Grey is the most released survey, “State could deliver. plan on increasing the most popular colour
popular colour Of The Industry — The most recent overall bathroom size, for walls, cabinets and
for bathroom Houzz Australia” survey from Houzz on while a dominant 68% benchtops, while grey
floors. indicates a broadly renovation activity now plan on increasing is the most popular
positive outcome for indicates that kitchen shower size, with that colour for floors.
• Most renovators
home improvement renovations are the trend running at 71% Nearly 70% hired a
plan on increas-
professionals during most popular with among homeowners building specialist to
ing the size of
showers, with the 2017. Some 70% of recent home buyers, aged between 25 and help with their bath-
trend stronger professionals indicated with 31% considering 34 years old. Some 64% room renovation, while
among those an increase in income these projects. Bath- are opting for a “water- 25% hired a bathroom
under 35 years for the year, with 53% rooms trail kitchens, fall” style showerhead, renovator.
old. saying their incomes with only 22% of with 62% also opting Download the most
went up by over 10%. recent home buyers for a handheld shower recent survey at:
Architects and home pursuing these reno- as well. tinyurl.com/y78p8jnp
interior designers were vations. Bathrooms In toilets, the dou-
the groups most likely are also costed lower ble-flush leads the
to have seen increased than kitchens, with market, with 70%
revenues. the former budgeted choosing this option.
hnn.bzbig box update
More tradies to buy
from Bunnings?
in
in this
this
Tradies are projected
to spend more money
update:
update: at Bunnings, according
to a report from Mac-
•start
Katoomba
text store quarie Wealth Manage-
opens and ment sent to its clients
recruitment for earlier this year.
Caringbah The report, seen by
The Australian, includ-
• Toilet installation
ed a recent Macquarie
initiative with
hipages survey of the mood
of tradies pointing
• New Zealand to more orders being
staff get holiday
16 pay entitlements
placed with Bunnings.
The Macquarie client
• Ongoing store note said:
developments We completed a Tradies are projected to spend more money at Bunnings, according to a report from
survey of 27 trade firms Macquarie Wealth Management
• Macquarie fore-
to obtain a better sense
cast more tradie
of market conditions of Bunnings were both received only a 4% Should there be an
customers for
and perceptions attributed to conve- preference… external shock, we con-
Bunnings
towards Bunnings. nience/location (36%), Bunnings’ like-for-like tend Bunnings should
Participation included customer service (24%) stats are impressive. be reasonably defen-
the following trades: and product range Supplementing this, sive as consumers are
builders, carpenters, (24%). the group has generally likely to cut back on
electricians, landscap- The survey found rolled out 10-14 stores more disposable spend-
ers, painters, plumbers that tradies believe per annum with a foot- ing and continue to
and others. conditions are gener- print now of 363 stores. spend money on their
The key takeaways ally stable or getting While highly variable primary asset (their
from its survey was better, with 40% of due to store ramp-up/ home) as evidenced
that conditions are respondents indicating stabilisation phases, by Bunnings’ strong
generally stable or their backlog is steady we estimate rollout has performance during
getting better, and that on last year and 40% accounted for around the GFC
Bunnings remained indicating it is more 30% of Bunnings EBIT https://goo.gl/
a “preferred retailer” positive. growth over time. TVmgb6
from 48% of respon- Bunnings continues Even if there is a
dents. Macquarie said: to lead the hardware sharp retreat in the
…68% of respondents retail sector, based on housing market,
view Bunnings posi- responses in the Mac- caused by financial
tively (compared to 8% quarie report. It said: shocks, rising debt
who view it negatively) Bunnings was clearly levels or a slowdown in
and 28% expect to the preferred retailer new housing, Bunnings
spend more at Bun- for tradespeople with could take on defensive
nings over the next 48% of responses, characteristics that
12 months. Primary while Home Timber & would serve it well in
drivers for the success Hardware and Mitre 10 such a downturn.
continues next page hnn.bzbig box
update
Store developments continue apace
Queensland will have manager NSW north,
a bigger Bunnings Cheryl Williams, said
presence; the Port the construction
Macquarie (NSW) store work is progressing as
is on track to open planned. She told Port
in early 2019; South Macquarie News:
Nowra (NSW) is set Once complete, the
to get a $27.8 million existing team will
Bunnings complex; and transfer to the new
a revamped Bunnings store and will be joined
Fyshwick in the ACT by more than 60 new
will focus on trades team members. Stock
and have a smaller from the existing site
retail offering. will be distributed to
other Bunnings stores
Queensland and racking will be re- The proposed expansion of the Bunnings Complex at South Nowra will see an overall
cycled within the store bigger warehouse area. Image: Sutherland and Associates Planning
Bunnings is investing network. Bunnings has
more than $636 million been a part of the Port
in existing stores and Macquarie community
17 creating 15 new ones since 2003…
across Queensland
over the next five South Nowra
years. Managing direc-
tor Michael Schneider Bunnings’ develop-
told the Courier Mail: ment approvals man-
We look forward to ager, Philip Drew has
continuing to grow our lodged a development
presence in both metro application with Shoal-
and regional parts of haven City Council for
Queensland … Con- a new store, which will
struction is underway be built on the current
at new sites in New- site at South Nowra
stead, Underwood and and take in an adjoin- A Bunnings store is being built in Newstead (QLD)
Warwick, with 12 more ing block of land to the grow by almost two south of the property, and containing lifts,
stores around the state north. and a half times its and an outdoor nurs- stairs as well as the
in the planning stages. In plans and re- current size. It is set to ery and bagged goods travelator providing
The Australian ports prepared by JR grow from the current canopy moving to the access to the park-
Bureau of Statistics Brogan & Associates gross floor area of northern end. ing level. A separate
data showed 22,500 and Sutherland & 6,248sqm to 14,130sqm. The construction secondary entrance to
new residents made Associates Planning, it Parking to go from 225 including a cafe, offices the nursery is provided
Queensland home last wants to demolish the spaces to 428 spaces and other staff ameni- at the northern end of
year – up by 7500 on existing warehouse under the building. ties areas will be locat- the eastern side of the
2015-16. complex on the Princes This $27.8 million ed at the northern end building.
Highway, consolidate development will see a of the main warehouse The big box retailer is
Port Macquarie the two lots of land new Bunnings Ware- floor and in a mezza- also reviewing its op-
and construct a new house above an under- nine level above. tions for a temporary
Work on the $43 hardware, building croft car parking level. The main pedestrian store location while
million, 18,000sqm supplies and garden The design will see the entrance into the store the complex is being
Bunnings Warehouse centre including car current complex lay- is located on the east- constructed.
on John Oxley Drive parking and signage. out on the site flipped, ern side of the ground
is on schedule. Bun- The proposal will see with the timber trade floor, with the main
nings’ state operations the complex’s footprint area moving to the entry centrally located continues next page
hnn.bzbig box
update
Bunnings NZ corrects holiday payments
in New Zealand we hours can get caught
understand the im- out if that person does
portance of the trust variable hours or earns
that exists between a commission or other
our team and the variable pay.
business, particularly The New Zealand
in ensuring they are government formed
paid correctly. Clearly a taskforce involving
this is disappointing government, business
for us and for our team and workers, to recom-
and we will continue to mend changes to the
work to ensure that we Holidays Act 2003 in a
have the right systems bid to unravel the leg-
and processes to sup- islation’s complexity to
port our team. cope with a fast-chang-
The issues with the ing labour market.
act centre around the The taskforce aims to
Bunnings NZ general manager Toby Lawrance is aiming to almost double revenue in the fact that there are recommend changes to
next five years and employ a further 1200 to 1500 staff. PIC credit: New Zealand Herald two ways to calculate the act by mid-2019.
holiday pay – either https://goo.gl/XWH-
18 Bunnings will pay and said all money employees are paid on the basis of ordi- hig
more than NZD11 owed will be inflated correctly until a per- nary weekly pay or https://goo.gl/QoPvyJ
million to 12,235 New to today’s dollars in manent solution can an employee’s average
aland past and cur- line with the Reserve be implemented. He weekly earnings over
rent employees after Bank of New Zealand said in a statement: the past 12 months.
identifying mistakes Consumer Price Index. Like many other pri- Employers must pay
in implementing the The median payment vate and government whatever gives the
Holidays Act 2003. is NZD317. organisations, we have employee the most
The company has Bunnings NZ gen- found interpreting and money. But employers
recalculated all leave eral manager Toby applying the Holiday who calculate holi-
payments from April Lawrance said the Act to be a challenge. day pay based on an
1, 2004, to May 31, 2018, company will ensure As a large employer employee’s contracted
Store developments (cont.)
Fyshwick ations and additions to Fyshwick operation to and truck queuing ing bays.
the Fyshwick Bun- provide for more goods area. The DA also proposes
The Fyshwick store is nings warehouse store and services aimed at The slightly smaller changes to the existing
not closing in the wake coincides with the 2016 trade related retailing. nursery will be an floorplan to allow part
of Bunnings opening purchase and current The bulky goods open structure partial- of the retail area to
its new airport site. It fit-out of the former retail area will lose ly covered by a shade be transformed into a
is to be repurposed as Masters site located at about 1000sqm of sail canopy suspended trade centre. The pro-
a trades centre, with Canberra International space, according to the between steel columns posed alterations will
a significantly less Airport. plans. The outdoor and 3.6m high chain not increase the total
general retail offering. Since acquiring the nursery area at the mesh fence. floor space or building
The airport store is airport site, Bunnings rear of building will be A new opening, roller height.
expected to capture has reviewed the cur- relocated to the front shutter door and can- https://goo.gl/FnzU4f
the majority of retail rent retail and trade so that space can be opy is to be installed https://goo.gl/16ALFm
activity, according to a offering within the converted into a bulk at the front (western
development applica- ACT and surrounding trade delivery loading side) of the building
tion (DA). It said: regions and have de- and unloading area for to incorporate five
The proposed alter- cided to re-purpose the the retail operation internal loading/park-
hnn.bzbig box
update
Bunnnings, hipages team up for toilet installations
Bunnings is offer- used to book a local Me (DIFM)
ing its customers a tradesperson on the customers.
fixed-price installation hipages website. IKEA, Bing
service through a The installation ser- Lee and
strategic partnership vice will be rolled out Coles have
with online trades and nationwide, following recently
services site hipages. a four-week trial in 15 teamed up
The deal will give Bunnings stores across with the
Bunnings customers Newcastle and the outsourcing
the option of adding a Central Coast, earlier marketplace
$275 fixed-price instal- in the year. In a state- Airtasker to
lation service — which ment, Bunnings man- offer similar
includes all fittings and aging director Michael installation
fixtures, removal and Schneider, said: or personal
disposal of old toilets, This is an exciting shopping
and a five-year war- offer…making it easier services.
ranty — from hipages and more affordable Hipages
when they purchase a for customers to said it vets
Bunnings customers purchase the installation in-store with their toilet
toilet suite. This offer update their bathroom the trades suite, then follow a process to connect with a hipages tradie
is available across the and connect with local licenses and
19 complete range of tradies to assist with Australian Business co-founder and chief to instantly book a
back to wall and close those jobs that require Numbers of all trades- executive David Vitek qualified, local tradie
coupled toilets in the a licensed tradesper- people registered on said: online.
Bunnings range. son. its site. The company We’re thrilled to part- https://goo.gl/
Customers will re- The big box retailer has approximately ner with Bunnings, to LFqQDH
ceive a unique voucher joins other retailers as 4,000 plumbers regis- help more Australians
code at the time of they move toward the tered with its service experience the benefit
purchase, which is market of Do-It-For- nationwide. Hipages and ease of being able
Katoomba opening, Caringbah staffing
Blue Mountains res- Katoomba kids playground and struct, will be double and the roof. When
idents were invited to parking for over 50 the size of the previ- complete, the new
the launch of the new Bunnings Katoomba cars. ous structure, with store will span over
Bunnings Katoomba recently had its official Bunnings chief op- two retail levels and 15,000sqm with the re-
store. opening. The new $9 erating officer Debbie underground parking tail area spread across
Bunnings also said it million store covers Poole joined store connected by lifts and two levels.
will recruit 120 staff for more than 2900sqm manager April Spillett travelators. The existing Caring-
its Caringbah ware- and features kitchen and the local Bunnings Bunnings state oper- bah team members will
house. and bathroom displays, team to celebrate the ations manager, NSW transfer from the tem-
opening. South, Robyn Hudson, porary store to the new
said construction was warehouse and will be
Caringbah on schedule and pro- joined by over 120 new
gressing as planned. team members.
Bunnings said it will She told The Leader https://goo.gl/zA1Bim
employ an extra 120 newspaper: https://goo.gl/2nvYTp
staff to work in its new With two car park
Caringbah warehouse, levels completed,
which is expected to construction has
open in late October. progressed to the
The building, which exterior of the building
was estimated to cost including the erection
$37.7 million to con- of concrete wall panels
hnn.bzindie update
Belmont Timber &
Fagg’s integration
in this
this As the new general
update:
update: manager of Belmont
Timber and Fagg’s Mi-
•start tre 10, Andrew Pitman
text
Doors closing for
Culburra Beach said uniting the cul-
Hardware tures of the two busi-
nesses into one is a pri-
• Landmark ority. With a corporate
acquires two background working
agribusinesses in for oil companies, Mr
South Australia Pittman can bring an-
• Two major other approach to the
20 Geelong-based hardware and timber
hardware and business. He told the new marketing
timber business- Geelong Advertiser: techniques, things
es become one I don’t claim to know that I am going to
the timber, but I think I bring to the table
know and understand that haven’t neces-
business and how sarily been in play
we can market the in this industry.
business in a different He and his
direction and in a dif- team will work to
ferent way to reach the combine two sig-
customers better than nificant Geelong
we do at the moment. brands. Fagg’s has
Previously the a 164-year history in well recognised in the Timber business, and
wholesale fuels sales the city and Belmont Geelong community investing more than
manager for Mobil Oil Timber was estab- and we are not going $100,000 to renovate of-
Australia, Mr Pitman’s lished by well-known to let that go. We are fices on the Settlement
career has been in Geelong Football Club keeping the heritage of Road site.
downstream market- benefactor, the late both companies alive. Belmont Timber
ing in the oil industry Alex Popescu in the Having completed represents about
and his retail exposure early 1950s. the initial back-end 30-40% of the com-
was gained through In recent years, both integration so they bined company which
running Mobil’s com- companies have come share point of sale and employs 230 staff
pany-operated service under Metcash owner- accounting systems, (including casuals and
stations. He brings an ship in different ways attention has turned part-timers) and which
outside perspective but there is a com- to harmonising the now promotes itself as
and experience in a mitment to keep both cultures of teams who the largest timber and
highly competitive brands under the new were once competitors. hardware business in
environment to the merged operation. Mr That process includes the greater Geelong
Geelong-based busi- Pitman explains: relocating some senior region. Mr Pitman said
ness: There is a rich history management from the focus would be on
We are going to em- and pedigree of expe- Fagg’s, which has
ploy new technologies, rience there which is absorbed the Belmont continues next page
hnn.bzindie
update
Culburra Beach Hardware forced to close
21 The West Culburra would have had a lot of decision, after months restaurants, cycleways, ware store in Culburra
development in NSW ongoing clients.”= of stress. picnic areas and a Beach since the 1970s so
gained the support of But, after news the There are still plenty sports field. Mr and we feel like we are let-
the local community, Department of Plan- of tourists coming Mrs Maulguet said had ting our loyal custom-
especially businesses ning and Environment through but they don’t the development gone ers down, but we just
who believed they recommended refusal stop at stores like ours. ahead sooner, it could can’t do it anymore.
could drastically of the project, the When you’re married have allowed them to https://goo.gl/8uQAyV
improve their bot- Maulguets have decid- and have kids the stay open.
tom-line. Jean-Paul and ed to close the doors at stress of the business We thought this de-
Kylie Maulguet pur- their hardware store. flows on to that, so we velopment would have
chased Culburra Beach Mr Maulguet said: needed to make the gone ahead years ago
Hardware eight years It’s just not finan- decision to close up. It’s which could have really
ago after hearing about cially viable. A large really sad. helped us.
the proposed devel- proportion of people The proposed devel- Mr and Mrs Maulguet
opment. Ms Maulguet who own homes in Cul- opment covers nearly said although the de-
told the South Coast burra don’t live here so 100 hectares of land. cision was fresh, they
Register: we don’t have enough Approval was sought believed they would be
That was one of customers to keep us for 650 homes, 3.5 closed within the next
the main reasons we going. hectares of industrial couple of months. Mrs
bought the shop. With Mrs Maulguet said real estate, tourist Maulguet said:
all the new homes we the couple made the accommodation, cafes, ...There’s been a hard-
Belmont Timber, Fagg’s (cont.)
growing its share of tive, that’s where our scope and opportunity Hardware group from pendently. What we
the trade market. strength is and that’s to engage with the Woolworths for $165 have done has brought
We don’t discount the where our core busi- business. million almost two them together.
retail side … Bunnings ness is. Fagg’s is partly owned years ago. Mr Pitman https://goo.gl/w9vTEq
has had an impact, but Operating out of by Metcash, while said:
our DIY and Mighty four locations will Belmont Timber has They were owned by
Rewards customers give trade customers, been owned by Met- the one company, (but)
remain loyal and particularly Belmont cash since it bought operating independent-
from a trade perspec- Timber clients, greater the Home Timber & ly, competing inde-
hnn.bzindie
update
Agribusiness group gets bigger
Landmark refers to itself as Australia’s largest distributor
of (rural) merchandise and fertiliser with a national network
of around 400 locations. Recently it has acquired two inde-
pendent South Australian-based agribusinesses, Jolpac Rural
Supplies and Naracoorte Agri Services.
The entities now trade as Landmark Jolpac in Bordertown
and Landmark NAS in Naracoorte. General manager for SA,
Craig Tapfield said the two well-established, successful busi-
nesses were a “good fit” for the company. He told Stock Journal:
We are continuing on what the Jolpac and NAS team have
been doing. We are not here to change anything, just add to it
and provide extra services to the local community.
At Bordertown, Landmark Jolpac will run out of the current
Jolpac site, while the company’s Dalgety Wool depot will run
from the existing Landmark site. Fertiliser and seed sales will
continue out of the NAS site in Naracoorte, with Landmark
Naracoorte’s branch remaining the merchandise hub.
NAS also owned a site at Murray Bridge which is now being
used by Landmark Murray Bridge. All staff were offered full-
time employment during the change of ownership.
22 Jolpac director Peter Jolly has become the new Landmark
Jolpac branch manager. NAS general manager Neil Nolan
has taken on the role of fertiliser manager and agronomist at
Naracoorte.
https://goo.gl/gdnyQ1
hnn.bzJohn 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
supplier update
Reliance Worldwide
expands into Europe
Plumbing products
in this
this maker, Reliance World-
update:
update: wide Corporation has
completed its acqui-
•start sition of UK based
textBlack &
Stanley
Decker invests in fittings manufacturer,
wireless John Guest Holdings.
The company will fund
• NZ plumbing the acquisition with a
businesses $1.1 billion equity rais-
added to Reece ing and extended debt
portfolio facility of $750m with
• Aged care home existing lenders.
24 uses CSR Gyprock It now intends to step
up in the European
• Knauf takes over
USG market using John
Guest as the platform
• Home renovation making strong head- partly to do with the Mr Sharp said Reli- could be successfully
features Gerard way in the USA with lower water pressure ance had been a suppli- leveraged through
Lighting its Sharkbite brand in the pipes. er in components for Reliance’s established
• Leadership of push-to-connect John Guest, is report- under-floor heating to North American and
change at plumbing fittings. They ing profit margins of John Guest for more Asia-Pacific distribu-
Fletcher Building are sold in Lowe’s and more than 30% from than a decade, and had tion channels. The
Australia Home Depot. sales of 145 million been looking to poten- company is already
Reliance chief ex- fittings in calendar tially buy the business working on a “100-day”
• Salley power
ecutive Heath Sharp 2017, mainly under the in 2016 but John Guest integration plan, using
tools
said John Guest, John Guest and Speed- aborted a formal sale a similar template as
• Digital workwear which employs 1300 fit brands. It services process then, in which it used in the smaller
company in JV people and has three the plumbing, heating others were also acquisition of the Hol-
with Wesfarmers large manufacturing and industrial mar- interested as potential drite business in the
• Reliance World- plants in the UK, was kets with distribution acquirers. When the US in mid-2017.
wide acquires strong in plastic push- facilities in Germany, opportunity emerged Reliance said the
John Guest to-connect fittings, France, Italy and Spain. again, Reliance took transaction is expected
which were popular in Reliance aims to advantage. to be more than 20%
• Briggs & Stratton
Europe, compared with extract $20 million in Reliance currently accretive to earnings
adds to its OPE
the US where brass synergies annually generates 70% of its per share on a 2018
brands
versions of the product once the business is sales from North financial year basis,
were steadily increas- fully integrated, but Mr America and operates before synergies.
ing in penetration. Sharp said the compa- 12 manufacturing facil- https://goo.gl/Fs8FY6
Reliance makes brass ny’s main goal was to ities around the world https://goo.gl/g4LRDh
the brass versions. harness the growth. He and this will expand to
Mr Sharp said plastic told Fairfax Media: 15 with the acquisition
push-to-connect They’re doing a lot of John Guest.
fittings were more that’s right. The num- Mr Sharp said John
accepted in the UK ber one goal is to retain Guest was an ideal
for historical reasons, the revenue. fit and its products
hnn.bzsupplier
update
Wesfarmers workwear seeks to disrupt category
The Workwear Group said the joint ven-
(WWG), a subsidiary of ture would boost the
Wesfarmers Industrial company’s revenues to
& Safety, has acquired more than $10 million
an equity stake in a year.
ONTHEGO (OTG), an WWG, which owns
online retailer of cus- Neat & Trim Uni-
tomised uniforms and forms and the Hard
sports apparel. Yakka and King Gee
Under the deal, WWG brands, will white label
will become another ONTHEGO’s software.
minority sharehold- Under a joint venture
er with others that and profit-share agree- matically improving was also scope to take have kiosk in resellers
include construction ment, orders generated speed to market. He ONTHEGO’s model like Totally Workwear,
company Doma Group, through WWG’s sales told Fairfax Media: into other Wesfarmers where a tradesman
Chris and Bob Camer- team and its website I personally feel that divisions and to other comes in and he needs
on from Rockcote, and will be fulfilled by that type of model is retailers by, for exam- uniforms for his team
TakeABreak co-found- ONTHEGO. potentially the way ple, setting up kiosks in and he can design it
er Craig Davis, now WWG chief executive of the future …There’s Officeworks, Bunnings and we can deliver it to
CEO of the GRIFFIN Doug Swan said the almost an element here or Rebel Sport, where him in three weeks – it
25 Accelerator, and snow upfront investment of keep your friends customers could order has far-reaching rami-
sports retailer Neil was small in the close and keep your en- and design customised fications.
Ritchie. context of Wesfarmers emies closer. If we can uniforms, sports appar- https://goo.gl/CU66c9
ONTHEGO founder but ONTHEGO’s model learn from Mick how el and team clothing https://goo.gl/WW-
Mick Spencer, who – on-demand manufac- he’s doing it and we online. He said: jL1m
started printing cus- turing, personalisation can replicate that with Longer term it’s got
tomised jerseys in the and a digital supply our business I think we big implications for
garage of his parents’ chain – could disrupt have an opportunity to how we can take the
Canberra home while the uniform and work- transform the uniform core brands King Gee
still at university wear sector by slashing industry. and Hard Yakka to
almost eight years ago, inventories and dra- Mr Swan said there market … We could
Power tools with style and function
share the same unam- been positioned be- drilling mode, both in
biguous style, focused tween the user’s index a clockwise and an an-
performance and finger and thumb for ti-clockwise direction.
constant attitude. ease of use. Changing between
Their aesthetics The battery is placed these modes is done
make them stand out directly over the through turning the
from their compet- housing, moving the dial in the front part of
itors including con- centre of gravity of the the housing between
trasting colours that machine close to the an index finger and
make up the body are saw blade. Its flat top thumb. Beneath the
then softened by the allows the saw to be plastic cover in the
natural, untouched set aside securely up- back, up to six screw-
finish of the cork, side down. The curved driver bits can be
which has been used front facilitates guid- stored.
on the handles. ing the tool with both https://goo.gl/So51zc
The base of the hands in a comfortable
The Salley Power up of two devices, a cordless driver hous- way.
Tools set, designed by cordless driver and a es six screwdriver bits, The cordless driver
Lukas Salley, is made compact jig saw. Both and the turn dial has offers a screwing and a
hnn.bzsupplier
update
Fletcher’s Australian operations gets new boss
New Zealand’s Fletch- and together generate to focus our portfo- building
er Building has consol- about $3 billion in sales lio by divesting our products
idated its Australian annually. Formica and Roof Tile operations
operations into one Chief executive Ross Group businesses and by 2023.
division and appointed Taylor has a five-year focusing our capital Mr Taylor
Dean Fradgley as the strategy for rebuild- and capability behind also ex-
new division’s head. He ing Fletcher using a the New Zealand and pects the
was previously chief simplified model where Australian markets. broader
executive of distribu- it will concentrate on While we don’t expect Australian
tion for the company. improving its New these markets to expe- residential
Fletcher is bringing Zealand and Australian rience the same levels con-
all of its Australian operations after a cost of growth they have struction
businesses, which blowout crisis in its NZ seen in recent times, market
combined generate commercial construc- we do expect them to to shrink
30% of Fletcher’s total tion business which remain stable and, with marginally
revenues, under the suffered AUD1 billion only 15% share of the in 2019
one roof to be man- in writedowns. New Zealand market and 2020
aged by Mr Fradgley. Mr Taylor believes and 1% in Australia, because
Dean Fradgley will head up Fletcher
They include Tradelink the Australasian there is plenty of of falling Building’s Australian operations
plumbing and bath- businesses have room opportunity to deliver demand
26 room supplies, Iplex to grow market share. more from our existing for apart- eastern seaboard of
pipes, Rocla concrete, He said: operations. ments. However this Australia.
Stramit steel products, As we announced to He has plans to dou- would be more than https://goo.gl/tThB9j
Tasman Sinkware and the market in April, we ble profit margins from offset by the infra-
Fletcher insulation, have made the decision Fletcher’s Australian structure boom on the
Lighting design for family home reno
Gerard Lighting ty, Gerard Lighting dining, the
worked with nor- suggested the Diginet homeown-
suHOME in terms of Sitara Lighting Control ers wanted
lighting plans to help system. The homeown- feature
find the ideal balance ers can personalise lighting
between architectur- the way they control around the
al design and family their lighting via their exterior of
living in a renovation smartphone or tablet, their home.
of a 1920s Californian whether it be setting Gerard
Bungalow, located in different lighting levels Lighting
Glen Iris (VIC). in a range of rooms, suggested
The home features choosing lighting its Cromp-
Pierlite Litelux Optic- moods or having lights ton KALI
olour LED Downlights, turn on to simulate oc- Adjustable
that have the ability to cupancy whilst they’re and Diablo LED
change colour tem- away. Wall Lights
perature when dimmed Gerard Lighting also because of their
and Pierlite Astara made recommenda- minimalist design
Real Ambient Sunset tions to use the Diginet and ability to
Dim LED Downlights, Smart Scan Sensor highlight the sur-
that allows the user to MKII to control LED rounding land-
“colour shift” the light strip lighting in the scaped greenery.
output. bathroom and laundry.
In terms of smart Having a love for the
home connectivi- outdoors and alfresco
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