BUNNINGS NAILS DOWN MORE LARGE FORMAT SPACES

Written on the 29 September 2015

BUNNINGS NAILS DOWN MORE LARGE FORMAT SPACES

BIGGER is better when it comes to hardware, with Bunnings stores repositioning and expanding their stores across Australia.

With demand for hardware goods growing across Australia, Bunnings are relocating to larger premises.

CBRE's Chris Parry says the expansion is unlocking opportunities to transform Bunnings into a large format business nationally.

"Across the country, Bunnings is moving from smaller format stores measuring 6,000sqm 9,000sqm to larger stores of approximately 14,000sqm 21,000sqm," Parry says.

"This is unlocking an opportunity for landlords to develop their ex-Bunnings freeholds into what often is a higher return."

Parry says Bunnings' need to compete with other hardware businesses like Masters is opening the door for new developments.

"The Sunbury Showroom development has proven to be a strong case study for retail repositioning, with Bunnings targeting larger footprints as part of the hardware race against Masters Home Improvement. This is leaving some of the older, smaller warehouses behind."

The Sunbury Showrooms at 85 Vineyard Road is a former Bunnings warehouse comprising 5,544sqm, now home to leading national retailers including The Good Guys, Total Tools, Repco and Godfreys.

Parry says the Sunbury area was an emerging destination for hardware retailers following Bunnings' departure.

"Bunnings relocated to the opposite side of the street, committing to approximately 13,000sqm, which further strengthens the precinct as a large format retail destination for Sunbury and the surrounds," Parry says.

"The subject property enjoys an estimated catchment of approximately 85,000 people, which has a large format retail spend 11 per cent higher than the Australian average and 8 per cent higher than the Melbourne average.

Similar projects are currently underway in Maribyrong, where a number of retailers are moving into a former Bunnings warehouse.

CBRE is also pre-leasing the former Bunnings in Burleigh Heads, Queensland, which is also undergoing a repositioning.

Ultimately, Parry believes this is just the beginning of a huge trend nationally.

"With Bunnings expanding its footprint across Australia, we envisage there will only be more opportunities such as this in the growing large format sector," he says.

"This trend is evidence of retailers capitalising on growth in the hardware sector, with the repositioning of these stores unlocking significant value for retailers."

 


Latest News

BABY STEPS FOR BELLAMY'S IN TURNAROUND

GREEN shoots are appearing in the Bellamy's Organic (ASX: BAL) business in the early days of its turnaround.

T...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

LOSSES MOUNT AT SLATER AND GORDON

SLATER and Gordon's losses continue to mount following its disastrous entry in to the UK market. The compa...

NVC PLAYS A DIFFERENT GAME, AND WINS

AS its profits rise, National Veterinary Care's (ASX: NVL) focus on training over retail is proving to be a wi...

Related News

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter