BUNNINGS NAILS DOWN MORE LARGE FORMAT SPACES

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."

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Lewis Land steps up plans for $1.5b Harbour Shores amid Gold Coast housing crunch

Lewis Land steps up plans for $1.5b Harbour Shores amid Gold Coast housing crunch

Sovereign Islands developer Lewis Land Group has stepped up the pac...

Melbourne homebuilder Langford Jones Homes enters liquidation owing $10m to creditors

Melbourne homebuilder Langford Jones Homes enters liquidation owing $10m to creditors

Customers of Langford Jones Homes have been left in limbo after the...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...

Commercial tower at Sydney’s Green Square receives development approval

Commercial tower at Sydney’s Green Square receives development approval

A commercial tower designed with the changing nature of work in min...