Bunnings ‘reimagining’ business to better cater for Gen Z DIY shoppers, says CEO Mike Schneider

The CEO of hardware giant Bunnings says the retailer has begun ‘reimagining’ its business to better cater to Generation Z, who he believes are absolutely focused on their future homes.

Online and social media will play a key role in Bunnings’ gambit to introduce Gen Z to the joys of do-it-yourself projects around the home.

The chief executive of hardware giant Bunnings says the retailer has begun “reimagining” its business to better cater to Generation Z, those consumers born between 1997 and 2012, who he believes are absolutely focused on their future homes.

Michael Schneider has unveiled Bunnings’ early strategies to capture this crucial and growing segment, with the hardware group increasingly reaching out to social media influencers and bloggers, building its YouTube presence and developing apps to help younger people better visualise their living spaces.

Online and social media will play a key role in Bunnings’ gambit to introduce Gen Z to the joys of do-it-yourself projects around the home, with the majority of these consumers still living with parents.

Speaking at the Global DIY Summit in Denmark, the Bunnings managing director focused much of his keynote address on the challenges and opportunities of Gen Z and what changes to the business were being made to appeal to this key demographic.

“Just as we got our collective minds around millennials, along came Generation Z.

“In the Asia-Pacific region, they make up around 20 per cent of the population and are reaching adulthood at a moment of reckoning for the environment, not to mention when home ownership is harder than ever to attain – and having just spent some of their most formative years in many and varied forms of lockdown,” Mr Schneider said.

“We believe Gen Z have defined attitudes and preferences that will require a reimagining of the DIY shopping experience. Today, they are infrequent purchasers of DIY products, relative to the average DIYer. And whilst that’s probably not too surprising given most still live at home, it means there are fantastic opportunities to connect and engage and inspire them around all things DIY.”

Research has shown that Gen Z and millennials are fast becoming a powerful joint force in the economy and for retailers, currently accounting for 36 per cent of total retail spending in Australia. Their combined share of retail spending is forecast to grow to 48 per cent by 2030, as more of Gen Z enter the workforce.

However, home ownership in Australia is at lows not seen since the 1950s and housing affordability a major political and economic issue. This could pose a threat to hardware heavyweight Bunnings, which heavily relies on homeowners visiting its stores for home improvement projects and DIY jobs around the home.

Bunnings chief executive Mike Schneider: ‘We believe Gen Z have defined attitudes and preferences that will require a reimagining of the DIY shopping experience.’ Picture: Peter Mathew

Mr Schneider told the conference that he believed younger Australians were still focused on their future homes.

“I say this because our research shows they are absolutely thinking about their future homes and, despite affordability challenges, they’re optimistic they will own a home one day.

“Their affinity with technology means they are smart home enthusiasts – more than two-thirds are interested in installing smart home tech in the future and similarly Gen Z are really interested in learning more about interior design and home styling.”

Mr Schneider said that unsurprisingly, Gen Z turned to online sources for DIY information and inspiration, and this was a space Bunnings would increasingly play in.

He said the hardware retailer would join with social media influencers, create YouTube videos to help Gen Z discover the Bunnings brand and be inspired about home projects.

“They want to source their DIY inspiration and discover products much in the same way as they curate their social media feeds and use other digital services,” he said. “For Bunnings that’s meant doing things a bit differently, seeking out social influencers and brands on social media, and thinking about apps to help visualise a space online, blogs and YouTube videos.”

This was shaping how Bunnings communicated with Gen Z on digital platforms, he added.

He said Bunnings was working more with social influencers too, recognising the important part these people played in Gen Z making their own retail purchasing decisions.

“We’re working extensively with social influencers to bring DIY inspiration to life in a relevant and relatable way,” he said. “We started working with influencers a few years ago and today we have an extensive program.”

Bunnings was developing an online community called Bunnings Workshop which had tens of thousands of members and provided ideas and inspiration customers need to start a new project.

This was being embraced by younger consumers, he said.

“Pleasingly, our membership base has more than doubled in the past two years, and 35 per cent of the Workshop audience are Gen Z or Gen Y, and we have big plans to expand Workshop, including exploring community engagement opportunities such as promoting local community projects and connecting groups with volunteers – to help Gen Z fulfil their desire for purpose.”