Bunnings is an Australian hardware chain, operating stores in Australia and New Zealand. It was founded in Perth, Australia, in 1887 by two English immigrants. It currently operates over 295 stores. Bunnings attempted to enter the UK market in 2016, with the intention of taking on market leader B&Q. British retailer Homebase was sold to Bunnings’ parent company Wesfarmers in 2016, which launched a programme to rebrand all Homebase stores to the Bunnings name. The rebrand and Wesfarmers’ management ended in financial disaster; with mounting losses, it sold Homebase to Hilco for £1, with all stores reverted back to the Homebase fascia. In its native Australia and New Zealand, Bunnings is notable for its involvement in local communities, regularly hosting ‘sausage sizzles’ and cake stalls for community groups and charities. It also hosts gardening, craft and woodwork classes for children in-store and in schools, and for groups in nursing homes and hospitals.
This time last year Homebase had just reported a £114.5m loss following several bad decisions by its former owner Wesfarmers.
As Easter approaches, Homebase chief executive Damian McGloughlin can look forward to DIY retailers’ equivalent of Christmas with more confidence than he could last year.
Retail Week cartoonist Patrick Blower’s take on Australian firm Wesfarmers disposing of Homebase after its disastrous attempt to launch Bunnings in the UK
News that Wesfarmers has disposed of Homebase to Hilco for a nominal £1, just two years after it bounded into the UK market, came as no surprise.
Wesfarmers, which bought Homebase two years ago, has disposed of the ailing DIY firm for just £1 following its disastrous attempt to launch Bunnings in the UK.
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