Bunnings’ Warehouse Future Strategic Plan Essay
|Executive summary | |2 |
|I. Summary of the current position of Bunnings | |3 |
| Financial Position | |3 |
| Bunnings’ strategy | |3 |
| Competitor focus …show more content…
Bunnings is Westfarmer Ltd’s wholly owned subsidiary operating in the retail hardware and home improvement sectors in Australia. Its primary markets are the small to medium-sized builders and owner-builders. It is a market leader, operating 177 warehouse stores, 56 small formats stores, 23 trade centres well as 7 frame and truss manufacturing sites in Australia. This accounts for 14% of this market. It also operates internationally in the New Zealand market where it owns 17 Bunnings Warehouse Stores and 24 small format Bunnings stores (Westfarmers annual Report 2009, p24).
According to Westfarmers’ 2009 annual report (2009, p24):
Bunnings cash sales grew 13% and the total Sales revenue grew 16.1% to $5.8 billion in 2009.
The EBIT grew by 15.84% from 2008 to 2009 and Bunnings recorded a profit of $1.535 billion. This accounted for 44 % of Wesfarmers' net profit. They currently employ 28,000 team members.
Bunnings recorded a strong result in all Australian states and across all product ranges. This was mainly driven by good execution of merchandising and operational strategies.
There are 10 new Bunnings warehouses and 10 trade centres opened with continued investment across the store network. Another 10 stores are under construction with 20 more sites being developed.