By Claire Reilly
Australian hardware chain Bunnings saw a 6.8 per cent increase in sales over the first half of the 2011-2012 financial year (compared to the same period in 2010), despite increased competition in the sector.
According to second quarter sales figures released today by Wesfarmers – parent company of the Bunnings, Officeworks, Kmart and Target retail chains – Bunnings made just over $3.7 billion in sales over the six months ending 31 December 2011.
However, as the chain’s biggest rival, Masters clearly outstripped Bunnings (albeit off a low base), posting a 16.4 per cent increase in sales figures over the same period – almost two and a half times the growth experienced by Bunnings.
Masters’ parent company Woolworths Limited released half-yearly results yesterday, with Masters posting an increase in sales from $354 million in the second half of 2010, to $412 million in the second half of 2011.
Speaking about the Bunnings quarterly sales figures was Wesfarmers Limited managing director, Richard Goyder.
“Bunnings’ sales increased 5.5 per cent in the quarter, despite ongoing deflationary impacts, reflecting a solid contribution from new store openings and growth in both consumer and commercial areas,” said Goyder.
The company opened 7 new Bunnings warehouses in the last 6 months, and there are 16 stores currently under construction, 10 of which are “expected to open before the end of this financial year”.
Click here to sign up for our FREE daily newsletter
Follow Current.com.au on Twitter
Wesfarmers’ other key retail businesses experienced mixed fortunes, with Kmart and Office Works sales creeping up by about 1 per cent each, and Target sales falling by roughly 2 per cent.
“Kmart and Officeworks continue to benefit from initiatives put in place to reposition these businesses,” said Goyder. “It was encouraging to see that both divisions reported another quarter of strong growth in both units sold and customer transactions although sales were affected by the deflationary pricing environment.
“Target experienced difficult trading conditions in the quarter with total sales declining 3.1 per cent. December sales were more encouraging as the business took steps to improve promotional effectiveness and stock management.