‘I don't apologise': Bunnings boss responds
Wesfarmers chief executive Rob Scott has hit back at an ABC Four Corners documentary accusing Bunnings of pressuring suppliers, stifling competition and inflating prices, saying he 'does not apologise for trying to build a successful business'.
The episode aired last week and put the beloved Australian hardware giant under scrutiny, highlighting supplier complaints and examining the chain's $19bn revenue and $3.2bn profit in 2024, figures that equate to a 16.8 per cent profit margin, nearly double that of supermarket giants Woolworths and Coles.
Speaking on Sky News' Business Weekend, Mr Scott defended Bunnings' operations and rejected the suggestion that the company engaged in unfair practices.
'We pay our team members more than well above the award rates, the relationships we have with our thousands of suppliers are very strong and longstanding,' Mr Scott said. Bunnings Warehouse has been accused of stifling competition and inflating prices. NewsWire / Andrew Henshaw Credit: News Corp Australia
'Now, occasionally, businesses make mistakes and when they do make a mistake, it's important that they own it and face into it.'
Mr Scott also acknowledged that Bunnings' presence in certain retail precincts could put pressure on competitors but maintained this was ultimately a benefit to customers.
'There is pressure on the competition, but at the end of the day someone has to be there for the customer, right?' he said.
'Someone has to offer great value to customers and remembering as well that I don't apologise for trying to build a successful business in Bunnings.'
He added that the company was contending with major global retailers and remained focused on maintaining local jobs and opportunities.
'We are fighting tooth and nail against some very big and fierce international competitors in the retail space and we would rather that those jobs and those opportunities stay within Bunnings,' he told Sky News. Wesfarmers chief executive Rob Scott said he 'does not apologise for trying to build a successful business'. Credit: Supplied
The ABC report also flagged concerns from suppliers who alleged the company marked up products significantly to boost profits, with critics claiming Bunnings' pricing strategy was misleading.
In response, Bunnings said its margins weren't directly comparable with supermarkets because of the nature of its stock and slower product turnover.
Bunnings' business practices are also expected to come under further scrutiny as part of a federal Senate inquiry into the market power of so-called 'big box' retailers, including Ikea and Costco.
In a statement following the Four Corners broadcast, Bunnings managing director Mike Schneider said the company 'strongly rejects any suggestions made in the program that we engage in anti-competitive behaviour, bullying, underpayment of our team or that we seek to limit consumer choice or the application of our price guarantee.
'We want to reaffirm our commitment to the values that have guided our business for decades which is in direct contrast to the characterisations made by the ABC.'
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