By Keri Algar
SYDNEY, NSW: Bunnings’ total store sales for the second quarter grew 4.7 per cent, while store-on-store growth was 2.4 per cent. This is a stronger outcome than the overall first half of FY11, when total store sales grew 4.4 per cent and store-on-store growth was 1.7 per cent. During the second quarter, 11 Bunnings locations were opened including 4 warehouses, 4 smaller format stores and 3 trade centres.
Richard Goyder, managing director of Wesfarmers said that once the tough retail environment had been into consideration the overall position of the company was in fact strong. The director also singled out Bunnings and Target as the divisions most affected by a competitive retail landscape and a high Australian dollar.
“Bunnings recorded headline sales growth of 4.8 per cent [total sales] with store-on-store growth of 2.4 per cent. This was a solid outcome considering the comparison to 11.1 per cent total sales growth achieved in the previous corresponding period and wet and cool weather on the east coast for much of the current period,” said Goyder in a statement released to the Australian Securities Exchange.
“Bunnings’ result reflects the ongoing focus on enhancing the customer experience and continuing expansion of the warehouse and trade centre network.”
Under the Wesfarmers Company umbrella for the second quarter of FY11 Coles listed the most successful retail sales up 6.7 per cent for the same period last year, Bunnings and Officeworks registered an increase of 4.7 per cent collectively while Kmart was up a mere 0.8 per cent and Target sales slumped down 4.2 per cent.