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Home Improvement and Gardening Stores in Australia

Australia home improvement stores market: A$18 billion industry in 2012

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2014-02-14 23:46:05 - Home Improvement and Gardening Stores in Australia - a new market research report on

Bunnings is the leading player in the Australia home improvement stores market, with a 22% value share and a 13% share of selling space. The retailer´s ability to generate 22% of the retail channel´s value sales from only 13% of the channels selling space, coupled with its focus on offering the lowest prices, shows the popularity of the stores as destination stores.

The presence of a foodservice offering within home improvement and gardening stores is an important trend in the retail channel. Bunnings has run a fundraising sausage sizzle and barbecue outside its stores on weekends for many years, while newer Bunnings stores usually offer a café on site. Masters has linked up with McDonald´s, meaning each Masters store has a



McDonald´s on site. The concept has been so successful that on one weekend a Masters affiliated McDonald´s store ran out of burger buns. As consumers opt to shop at big box retailers for their home improvement and gardening needs, many independent nurseries have also opened cafés within their retail spaces. The nature of nurseries, with large open spaces, allows for pleasant alfresco dining.

Retailers in DIY, home improvement and gardening stores tend to focus on price competition as a key method to drive value sales. Bunnings is renowned for offering some of the lowest prices, and Masters will follow a similar strategy. Retailers are also looking to loyalty schemes to facilitate value growth, as seen in Dank´s garden centre division of Plants Plus. The retailer has reported strong interest amongst consumers, reaching 1,000 members over a one year period.

Key Headlines

- Home improvement and gardening store grow by 3% in current value to A$18.0 billion in 2012
- The growing popularity of "big box" retailers was a key trend over 2012
- Wesfarmers Ltd´s Bunnings leads sales, with a 22% value share in 2012
- Home improvement and garden stores is expected to see a CAGR of 2% in constant value terms over the forecast period

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