Bunnings to launch into fast-growing petcare products sector

Hardware giant Bunnings – already a popular spot for pets – launches a major assault on the booming sector as Aussies spend billions pampering their animals.

Bunnings will launch a new and expanded pets offer next month that will see the biggest single category expansion by the hardware retailer in two decades as it makes a play for the fast-growing pet care and products sector that is worth as much as $10bn.

The hardware giant has begun fitting out its national network of stores to carry a much stronger and hugely expanded pets range, which will take up a large space within the traditional Bunnings store and be rolled out through most of its operations by the end of March.

Its push into petcare goods, from cages and enclosures to rugs and pet food, will cash in on soaring pet ownership levels in Australia since the Covid-19 lockdowns, with pet owners increasingly spending more money on their animal companions to make them often the most spoiled members of the family.

“What we are going to be bringing to life in our stores over the next four weeks is quite a comprehensive step change in our pet range, probably the biggest category expansion in Bunnings for 20 years,” Bunnings managing director Mike Schneider told The Australian.

He said Bunnings’ shoppers were already comfortable with bringing their pets into stores when walking the aisles for hardware and home improvement goods, with the chain set to offer as many as 1000 pet-related products at competitive prices, within a dedicated selling space of 40 square metres in the stores.

Bunnings managing director Mike Schneider and his dog Henry.

“If you look at the last few years I think it is 60 per cent of Australians now own at least one pet, it has become a very important part of many, many families across Australia and we think that connection that people have with the Bunnings brand, bringing those pets into the store, creates a great advantage,” Mr Schneider said.

“We believe Australians have a really deep passion for everything around their home and everything that’s in their home.

“And we do think we can bring a very, very competitive offer into this market and we think that given the sort of comfort that the customers have bringing their pets into the business it’s going to be a very good complementary category for us.”

Its move into petcare goods will also interestingly place the hardware retailer further into direct competition with its old nemesis Woolworths, which has also recently invested heavily in pet businesses.

Underlining the potential profits up for grabs in the space, in December Woolworths spent $586m to buy a 55 per cent stake in Petspiration which owns the PETstock retail banner, 276 stores, 65 vet clinics and 162 grooming ­salons.

It was only 12 years ago that Woolworths launched its ill-fated move into the $45bn hardware sector with the opening and roll out of its Masters hardware chain that took the fight to Bunnings – but it was eventually shut down after burning through billions of dollars and never making a profit.

Now Woolworths and Bunnings will battle it out for the loyalty and wallets of pet owners.

“I’m not sure you can bring your pets into a supermarket,” Mr Schneider cheekily remarked.

Some of the space in Bunnings stores handed over to a new pets hub with be partially taken from categories like children’s playground equipment which Mr Schneider conceded had not given the retailer the returns on the space it was looking for.

The hardware and home improvement giant has made a habit of shifting into adjacent categories, such as flatpack kitchens and swimming pool fences that have quickly turned into huge profit generators.

Bunnings has made a habit of shifting into adjacent categories, such as flatpack kitchens and swimming pool fences that have quickly turned into huge profit generators. Picture: Aaron Goodwin

The pets move was a natural extension for Bunnings, he said.

“When you do look at the fact that we as a retailer really participate strongly in everything around the home and we talk about our ranging lens being everything from the front gate to the back fence and wanting to cater to all members of the family, whether it’s the younger members of the family or those wanting to stay in their homes longer,” he said.

“I think there’s a very natural extension to the four-legged members of the family and when we look at the sort of growth of the existing pet range, it’s really clear customers, where we have a good pet range, have been looking for more from Bunnings in this space.

“And when you line it up with the fact that you’ve got such high participation rates now in terms of pet ownership across the country, it’s a natural extension for us.

“While we do think that there’s a couple of other channels to market, (but) the uniqueness of what we can do, and the natural draw that people have to go to Bunnings on a weekend to do things with the whole family, really sort of extends through into pets.”

While Bunnings has sold pet enclosures and cages for some time, its accelerated offer will take the chain into more daily product offerings for pet owners.

“This has taken us more into durables and accessories, and pet food as well. So really exciting in terms of where we are going to be able to play,” Mr Schneider said.

The move into pets was the “logical step” for Bunnings and the market should expect over the next few years a move into other growth categories.

“We want to grow the market and grow our share, but we want to grow categories in which we operate and where it makes sense to take logical next steps in categories where we may have a small representation but we think we can expand that in a very meaningful way,” Mr Schneider said.

“Identifying opportunities to grow and grow profitably fits very neatly in our strategic agenda.”