For orecast ecasting ing for or New New Br Brand and Entr - PowerPoint PPT Presentation

For orecast ecasting ing for or New New Br Brand and Entr Entry Kerry Smith – Network Planning Manager Bunnings/Homebase

Bunny Who??

Acquisition of Homebase • Homebase – Owned by Home Retail group since 2002 • Transfer of ownership to Wesfarmers took place on 27 February 2016 • Retailers include Bunnings (Aus DIY No 1), Coles supermarkets and Target/Kmart discount department stores

Bunnings Australia & NZ • Leading retailer of home improvement and outdoor living products: 250 warehouses, 77 smaller format stores, 33 trade centres • 40,000 team members • Bunnings has the largest market share. Other competitors include Mitre 10 and Home Timber and Hardware “Our ambition is to provide our customers with the wid est range of home improvement products in accordance with our lowest prices policy, backed with the best service ”

Bunnings is ‘an Institution’ Jordan and Chantelle Wilson, from Sydney, celebrated tying the knot by heading straight to Bunnings Belrose for a traditional treat. “Bunnings sausage sizzle the backbone of the Australian culture”

Why the UK?

The Story so Far… • New leadership team • Restructured business • Early focus on separation from HRG • More EDLP pricing • Increased stock volumes • Removal of concessions

The First Bunnings Pilots… • Ten trading stores • Mix of store sizes, competition, demographics • Further test of brand in Rochdale and Rotherham (ex B&Qs) • And smaller format store in Bicester

The First Bunnings Pilots…

The First Bunnings Pilots…

The First Bunnings Pilots…

The Forecasting Challenge… • How will the UK take to a new brand? • Who is our core customer? • Will the best performing Homebase stores necessarily be the best performing Bunnings stores? • Will people divert from their long established habits? • How will a lack of online presence affect stores sales? • What is the optimum store size?

Cultural Shifts… • Pace, responsibility, “let’s try it” attitude • Store empowerment • Lack of market leadership • Comparatively difficult climate to build and open stores • Importance of marketing

But an Amazing Opportunity…. • Brilliant operators • Pilots seen strong performance so far • Significant investment • How to roll out the Bunnings brand? • 2018 will be an exciting year for the UK HI&G market