Bunnings sustaining big sales losses with Homebase stores

Bunnings sustaining big sales losses with Homebase stores

Bunnings continues to grow strongly in its domestic market in Australia and in New Zealand, but is suffering huge sales losses in Great Britain. These developments emerged from the latest quarterly report of the group's parent company Wesfarmers. Compared with the same period in the previous year, sales in the United Kingdom and Ireland in the three months from July to September fell by 13.8 per cent to GBP 276 mio. Store-on-store sales decreased by 11.9 per cent. "While the performance of Homebase is disappointing, we continue to be encouraged by the performance of the Bunnings pilots," commented Bunnings Group managing director Michael Schneider with regard to the figures. In the report, the poor performance of the Homebase stores is explained by the statement "Despite steady sales in core home improvement and garden categories, Homebase's trading performance relative to the previous comparable period was adversely affected by the significant clearance of discontinued ranges last year." There were 244 Homebase stores and eight Bunnings stores as at 30 September 2017 in the UK and Ireland. Another 15 to 20 pilot stores are expected to be added by 31 December 2017. In Australia and New Zealand, total sales for the quarter were AUD 2.964 bn, an increase of 11.5 per cent compared to the corresponding period in 2016. Store-on-store growth was 10.8 per cent.