Bunnings unveils $350m NZ expansion
People think it’s [selfcheckouts] putting staff out of jobs. But it’s around efficiencies and team members can be redeployed, doing something else. Toby Lawrance, Bunnings NZ
Bunnings New Zealand will spend $350 million in the next five years, unveil selfservice checkouts, and open its largest new store. Toby Lawrance, NZ general manager, revealed plans for the big-box warehouse-style DIY chain, saying two new stores were under construction, others were planned and being refitted or upgraded, and customer experience would soon change with scan-and-go checkouts.
“Aspirations for us in the next two to three years are $175m of work but over five years, another $175m, making it around $350m and creating about 1200 new jobs.
“We’re building new stores at Westgate and Christchurch Airport and hope to start soon in Queenstown.
“Self-checkouts will be introduced soon for big stores like Manukau and Botany.
“People think it’s putting staff out of jobs. But it’s around efficiencies and team members can be redeployed, doing something else.
“All new stores will eventually be self-checkout to enhance the customer experience. Then, we would run a retrospective programme in existing stores.”
Bunnings NZ has 55 stores — 22 Bunnings Warehouse premises, 20 smaller-format stores and eight trade centres. Australasian operations made A$6.9b ($7.19b) revenue for the half-year to December 31, 2018, up 5.2 per cent on the previous A$6.5b.
Lawrence said the new Bunnings Westgate at 21 Fred Taylor Dr in north-west Auckland had been longawaited. At 15,544sq m, it will be NZ’s biggest Bunnings, with an estimated completion value of $65m-$67m. Construction is underway and 745sq m of retail tenancies are also being built, making the complex 16,290sq m on completion, with 318 car parks. More than 180 staff will work there.
Currently, New Zealand’s largest Bunnings is Riccarton at 15,644sq m, Lawrance said.
Construction is underway on a new $33m Bunnings Warehouse at 661 Russley Road, Christchurch Airport. That 14,105sq m store will have 300 car parks and more than 170 staff, Lawrance said.
The first Bunnings at Queenstown is a $33m venture planned for 148-150 Frankton-Ladies Mile Highway, but consents are not yet granted. Plans are for an 8080sq m project with 138 car parks and about 88 staff.
“There were objections,” Lawrance said of the scheme where the business appealed a negative planning decision. Bunnings won in the Environment Court, getting a ruling saying that rival H&J Smith was closely associated with the Mitre 10 Mega operation, disqualifying it from opposing the new development.
The Resource Management Act says the act cannot be used to oppose commercial competitors.
Stores being upgraded include Botany, Manukau and Nelson while Bunnings’ Dunedin and Gisborne stores are being expanded.
Around 200 head office staff moved on Monday from 78 Carbine Rd, Mt Wellington to 660 Great South Rd in Ellerslie, taking two floors joined by a new internal stairway.
The premises are on a nine-year lease with options from Goodman Property Trust.
Many interior design items, including light fittings, are from Bunnings’ own stores and Lawrance said that kept costs low.
Meeting rooms have wood garden trellis decorating walls. Bunnings’ red and green colours are incorporated in soft furnishings and paint finishes.
A new kitchen/dining area is large enough to hold functions, potentially dispensing with the need for Bunnings to hire venues away from its own office.
Lawrance said the Mt Wellington headquarters were outdated and not in good condition so the shift had been widely welcomed by its staff.
Video conferencing in a boardroom will mean fewer trips to Australia, saving money and time, he said.