Latest news with #Gardening
The Irish Sun
4 days ago
- Lifestyle
- The Irish Sun
Cheap £9 buy will instantly elevate your garden – it adds privacy and enhances your plants
IF you're getting your garden ready for summer, this feature may be worth adding. You can pan out in peace with no worries of nosy neighbours with this budget buy. 2 Adding the Smart Garden Climbing Plant & Fencing Mesh to your garden can improve your privacy Credit: Sam Turner And even if your outdoor space isn't overly exposed, this item is still worth your time. It will instantly elevate the look of your garden as well as adding privacy to your space. So whether you enjoy lying out in the sun or dining al fresco, this buy may be for you. The You can choose between green or brown designs with the size options 0.5 metres by five metres or one metre by five metres. The fencing is made of "strong UV-stabilised rigid plastic" with "easy to cut" mesh. According to manufacturers, this "can be used in a variety of ways to enhance your garden". It is said to provide "sturdy support for climbing plants, against walls or arches". Most read in Fabulous Gardening experts recommended climbing plants to create a natural barrier in your backyard. The pros at I made a DIY fence for £68 with pallets from Facebook Marketplace - it gives more privacy & people say it's 'fantastic' Instead of opting for tired hedging, they recommended gardeners "consider screening off areas within your backyard using shrubs or climbing plants as opposed to blocking your whole boundary". They suggested ivy, jasmine, clematis, and roses for "maximum screening power without creating an overly boxed-in look". Another How to create privacy in your garden CREATING privacy in your garden can be achieved in a number of ways depending on your budget, and the size of your space. Here are some effective ways to enhance privacy in your garden: 1. Fencing Install a tall, solid wooden or vinyl fence. This is one of the most straightforward ways to gain immediate privacy. Or use lattice panels, trellis, or slatted fencing to add a decorative touch while still offering privacy. 2. Hedges and Plants Fast-growing evergreen shrubs or trees like Leylandii, Thuja, or Bamboo along the boundary of your garden can help with privacy. Grow a dense hedge using plants like Boxwood, Privet, or Laurel. It may take time to grow, but it provides a natural and green privacy screen. Use climbers like Ivy, Clematis, or Wisteria on fences or trellises to create a lush, green privacy barrier. 3. Outdoor Curtains Hang outdoor curtains around pergolas, gazebos, or patios for an easy-to-adjust privacy solution. 4. Sound Barriers A water fountain or small waterfall can help drown out noise, adding to the sense of privacy. Or install fencing designed to reduce noise if privacy from sound is also a concern. And a £10 B&M You can also And its not just fences that can help give you privacy in your garden, one Meanwhile, a Home Bargains buy is said to Read more on the Irish Sun And a £10 B&M You can also 2 Climbing plants can create natural barriers in your garden during the summer (stock image) Credit: Getty
The Guardian
16-05-2025
- The Guardian
The smarter way to a perfect lawn
Say goodbye to the hassle of traditional lawnmowing and let Honda Miimo take care of your garden with precision and ease. This intelligent robotic mower adapts to your garden, adjusting its routine based on weather and grass growth. With smart navigation, mowing schedules, and micro-mulching, Miimo keeps your lawn looking its best without the work. Control it through the Mii-Monitor app or Amazon Alexa for ultimate convenience. Whether your garden is small or expansive, there's a Miimo for you.
ABC News
12-05-2025
- Business
- ABC News
Hammered: Inside the Bunnings Machine
"Hammered — inside the Bunnings machine" 12 May, 2025 Four Corners ANGUS GRIGG, REPORTER: It's Australia's most trusted brand, a hardware giant that has come to epitomise our love of gardening, tinkering and home improvement. JOHN DAHSLEN, CHAIRMAN, DAHLSENS: Bunnings is a brilliant business model. CAMEY O'KEEFE, BRANDING EXPERT: They do a really good job of feeling super approachable. BUNNINGS TVC: At Bunnings we work hard to bring you the lowest prices every day. ANGUS GRIGG, REPORTER: But behind the folksy staff, aprons and catchy jingle is a corporate titan with the power to set prices, crush competitors and dominate suppliers. KAREN BROCK, BROCKLANDS NURSERY: We were slaves to Bunnings. We were like a mouse running around the hamster wheel. PETER SMITH, BOOMAROO NURSERY: It's left me feeling drained and like I'm insane they belittle you GEORGE MINGIN, KOOKABURRA WORM FARMS: There was never any respect. They never said thank you for anything. PROFESSOR CLINTON FREE, UNIVERSITY OF SYDNEY BUSINESS SCHOOL: It's sausage sizzles and face paint on the surface, but real dominance underneath. ANGUS GRIGG, REPORTER: They've sold themselves on having the lowest prices and being on the side of you, the consumer. ANGUS GRIGG, REPORTER: Hey there, just wondering what you sell this for? ANGUS GRIGG, REPORTER: But we investigate who pays when one player has too much power. JOHN DAHLSEN, CHAIRMAN, DAHLSENS: We are at Bunning's mercy. ANGUS GRIGG, REPORTER: Now a whistleblower is taking the hardware giant to court. He's not alone. ANGUS GRIGG: How does it feel coming back and seeing it all locked up? TERRY BIRBILIS, FORMER SUPPLIER: Heartbreaking. Genuinely heartbreaking. ANGUS GRIGG, REPORTER: While the supermarket duopoly has come under intense scrutiny, Bunnings has been largely ignored. DAVID WOODMAN, MITRE 10 OWNER: Hardware is heading exactly the same direction as the supermarkets. Only worse. ANGUS GRIGG, REPORTER: Bunnings insists it's committed to value, service and fairness. The new government has big decisions to make. TREASURER JIM CHALMERS: I'm aware that people have raised concerns about Bunnings… ANGUS GRIGG: If Bunnings asked you to come back what would you say? GEORGE MINGIN: I'd give them the finger, literally. TITLE CARD: "Hammered — inside the Bunnings machine" ANGUS GRIGG, REPORTER: Bunnings. It's home to smiling staff, aisles of seemingly endless choice and Australia's most famous sausage sizzle. TOURIST: The most Australian thing you could eat is a Bunnings sausage sizzle bro, it's a white piece of bread, sausage and some tomato sauce as they say. CAMEY O'KEEFE, BRANDING EXPERT: The Bunnings sausage sizzle is pure marketing genius. If you think about Bunnings, this is this mass market, big corporate chain, and through offering up at very low cost, the sausage sizzle every weekend they are strengthening community ties and building this local as like hyper-local association. But it also drives foot traffic to the location. ANGUS GRIGG, REPORTER: Branding expert Camey O'Keefe says no other retailer in Australia delivers such a simple, disciplined message. CAMEY O'KEEFE, BRANDING EXPERT: I would say the fact that Bunnings has held to this really consistent look and feel for decades now absolutely has contributed to the strength of the brand. ANGUS GRIGG, REPORTER: That brand strength helped Bunnings generate $19 billion in revenue last year. That's 5 times more than its nearest competitor. PROFESSOR CLINTON FREE, UNIVERSITY OF SYDNEY BUSINESS SCHOOL: Bunnings' result is really quite extraordinary and it really plays in the league of its own in terms of big box retail, not just in Australia, but I think internationally as well. ANGUS GRIGG, REPORTER: Bunnings is also super profitable. Last year its profit margin was almost 17 per cent, that's nearly double that of Coles, and significantly higher than Woolworths'. PROFESSOR CLINTON FREE: Bunnings has managed itself very skillfully through flying under the radar a little bit, having a very trusted brand, having a CEO without an enormous public profile. It meant that it's not been subject to scrutiny in the same way that, for example, Coles and Woolworths have. ANGUS GRIGG, REPORTER: Professor Clinton Free did his doctorate at Oxford University on market power and says high profits typically flow from weak competition. PROFESSOR CLINTON FREE: There's a number of interesting angles to the Bunnings story. It's an enormous success financially, but it also starts to raise big questions about market power. ANGUS GRIGG, REPORTER: Bunnings market share is highly contested. The company claims it competes against almost everyone, from Coles and Woolies, to Kmart, Myer and JB Hifi. Even Spotlight. That's not to mention Amazon, eBay, Kogan, PetStock, Petbarn…the list goes on. That's how it's able to claim a market share of just 17%. It's impossible to independently verify this figure, because Bunnings won't release detailed data. Research firm IbisWorld puts Bunnings' market share at around 33% of retail hardware, while noting it's far and away the leading player in the claim its market share is double this. JOHN DAHSLEN, CHAIRMAN, DAHLSENS: Bunnings itself has a higher, much higher market share than, uh, than Coles and Woolworths combined. But further the rest of the market, there's no one, uh, powerful enough to challenge them. ANGUS GRIGG, REPORTER: John Dahlsen runs a chain of hardware stores. He's also a competition lawyer, and former chairman of Woolworths JOHN DAHSLEN, CHAIRMAN, DAHLSENS: To be brutal, I think they are a quasi-monopoly. They don't want to promote the fact that they've got a huge market share because that's very bad for their image. PROFESSOR CLINTON FREE: A company with 30% market share exercises substantial market power. At 60 or 70% market share, I think you can dictate prices, you can dominate suppliers, and you can really repel new entrants and make it very difficult to compete for others. ANGUS GRIGG, REPORTER: Last year when the supermarkets were being called to account over price gouging and supplier mistreatment, allegations began to emerge against Bunnings. KAREN BROCK, BROCKLANDS NURSERY: We felt that we were slaves to Bunnings. We were like a mouse running around the hamster wheel. PETER SMITH, BOOMAROO NURSERY: Every time we requested a price increase, some kind of threat was made to make you feel like you were asking for something completely terrible. SENATOR ROSS CADELL: Yeah, I hear lowest prices are only the beginning cause the rest of the story is a bit of a horror story…from what I hear ANGUS GRIGG, REPORTER: There was parliamentary momentum. A Big Box Retailer Inquiry was setup to examine abuses of market power. It's since stalled, allowing the slow march of Bunnings to continue. It's a busy weekday morning at this Mitre 10 in the outer Brisbane suburb of Jimboomba. DAVID WOODMAN, MITRE 10 OWNER: How are you today, ma'am? ANGUS GRIGG, REPORTER: Owner David Woodman is on the floor. DAVID WOODMAN, MITRE 10 OWNER: What can I do to help you? You've got everything you need? ANGUS GRIGG, REPORTER: His family have been in the hardware business for 90 years. He's owned this Mitre 10 since 2018. DAVID WOODMAN: It's very well ranged, it's well priced, it's well stocked. We're competitive on pricing. But above all, we offer a really genuine service. ANGUS GRIGG, REPORTER: But this store is now under threat. DAVID WOODMAN, MITRE 10 OWNER: Bunnings have bought the property next door and they've advertised or put in the newspapers that they're going to build a 15,000 plus square metre box next door to us. ANGUS GRIGG, REPORTER: To put that in perspective, that's at least eight times bigger than David Woodman's store. Plans approved by Logan City council show the new Bunnings will take up this entire block, with the main warehouse, a garden centre, a timber yard, and a car park for more than 370 vehicles. There are already three well-established Bunnings within a 30 km radius. And in greater Brisbane, there's more than a dozen others. ANGUS GRIGG: If Bunnings open here, what impact will it have on your business? DAVID WOODMAN: Look, just based on our past experience, it's not going to be good. We think it'll affect our sales to the point where we'll end up losing profits. And being a small family business, we can't sustain that, so we'd probably end up shutting the store. ANGUS GRIGG: What do you think it means that they're setting up next door. DAVID WOODMAN: Oh look, I think it really only means one thing, that they really want to put us out of business. They know from other sites that that's what happens. And so I can only imagine that's their plan. ANGUS GRIGG: Does it feel predatory? DAVID WOODMAN: By definition? I think that's what it is. Certainly, that's the way it feels anyway. ANGUS GRIGG, REPORTER: And it's not just his Mitre 10 that could be impacted. DAVID WOODMAN: Bunnings have a very broad range. So stores like pool supply companies like mower shops, other timber merchants and paint shops, plumbing shops, they'll all be affected. ANGUS GRIGG: You don't have to drive far to see what he means. I'm just coming past the site purchased by Bunnings and as you can see, it's massive. And just up here is a cul-de-sac. ANGUS GRIGG, REPORTER: Here, there's a plumbing supplies store, behind that a shop selling lawn mowers and over the road is a business selling building materials. ANGUS GRIGG: Okay so I'm just heading back out to the main road. ANGUS GRIGG, REPORTER: Here, there's a blinds shop, a landscaping supply store. That's not to mention the water pump shop, the business selling chainsaws and the pool supply store. ANGUS GRIGG: All these businesses will be affected by Bunnings coming to town. ANGUS GRIGG, REPORTER: Some say the hardware giant's arrival could benefit their business, while others are deeply concerned. Bunnings declined an on-camera interview with Four Corners but in a statement said its new store will bring more choice and competition, and provide local jobs when it opens next year. David Woodman believes consumers will lose out if he's forced to shut. DAVID WOODMAN: They don't carry all the same brands as we do. So once we go, customers are going to lose access to all those brands. It's all about , it's about choice of service, it's about choice of range. ANGUS GRIGG, REPORTER: While there's little to stop Bunnings setting up next to David Woodman's Mitre 10, the hardware giant likes to prevent others from moving onto its turf. Emails seen by Four Corners show how Bunnings locks out its rivals from prime retail locations. In 2021 one rival was keen to open a store in this new retail precinct on the Gold Coast, only to be told Bunnings had an exclusivity clause in its leasing agreement. VOICE: "…Tools cannot be accommodated …. due to Bunnings exclusivity". ANGUS GRIGG, REPORTER: And it's not just on the Gold Coast. In the same year, a that rival tried to open a store in the outer Melbourne suburb of Melton. They were told: VOICE: "Unfortunately Bunnings have put a restriction clause on the development for all tool operators … ANGUS GRIGG, REPORTER: Then last year it came up against the same restriction on the NSW central coast. VOICE: "Unfortunately, Bunnings have exclusivity in the centre for tools". ANGUS GRIGG, REPORTER: Bunnings says such arrangements are only used on "select occasions" to protect its investment and that these usually only last 10 years. In 2009, regulator, the ACCC, forced Coles and Woolworths to end the use of these exclusivity clauses because they inhibit competition. Next year, the regulator will have new powers to scrutinise land acquisitions and leases, but these won't apply retrospectively. Bunnings was not always so dominant. It began life as a WA timber company prior to federation. In the early 1960s it expanded into retail, only opening its first warehouse in 1994. MITRE 10 TVC: At Mitre 10 we have all the tools, the timber, materials you need ANGUS GRIGG, REPORTER: Back then, with around 10% market share, Mitre 10 was the dominant player, and there were hundreds of local independents. The superstore concept was yet to be tested. REPORTER: This new Mitre 10 store may soon be in battle against a Bunnings superstore being planned for just down the road. STORE MANAGER, STUD PARK MITRE 10: I believe a well run, smaller owner operated store will always be able to compete ANGUS GRIGG, REPORTER: That Mitre 10 store in Melbourne no longer exists. In the decades since, Bunnings has expanded aggressively. In 1993 it took over McEwans hardware, then in 2001 it moved on BBC Hardware, also trading as Hardware House, giving it a national footprint. Competition regulator, the ACCC, waived through the deal without a single objection. As the new millennium began Bunnings had $1.4 billion in sales across 47 stores. Today its revenue is 13 times that across a massive empire. As well as 310 warehouses, it has specialist tile and tool chains, acquired with no objection from the ACCC. For consumers, part of the Bunnings appeal is its heavily promoted price match guarantee. BUNNINGS TVC: Get inspired this DIY July and get it done for less. Citeco ladder $159. When you find a competitor's price on the same stocked item, we'll beat it by 10%. ANGUS GRIGG: So I've just purchased the ladder shown in the ad. But what I'm wondering is could I have found it cheaper somewhere else … as we all know Bunnings tells us if we can find a cheaper price on a stocked item they'll beat it by 10 per cent. ANGUS GRIGG: Hey there, just wondering what you sell this for? ANGUS GRIGG: Afternoon, just wondering, do you have this type of ladder? ANGUS GRIGG: Hey there, just wondering what you sell this for? SHOPKEEPER 1: I don't have that brand SHOPKEEPER 2: This ladder I don't have SHOPKEEPER 3: We don't actually stock that brand, we can get a similar one. ANGUS GRIGG: So you don't sell Citeco? SHOPKEEPER 1: No, I don't. Haven't seen that brand before. HARDWARE MAN 2: No I don't have that Citeco ANGUS GRIGG: You don't do Citeco? SHOPKEEPER 3: I think you can only get that at Bunnings. ANGUS GRIGG: So it turns out you can't buy this ladder anywhere else. That's because it's a Bunnings house brand. It's not only manufactured for Bunnings but Bunnings even owns the trademark … not that you'd ever know. Bunnings ownership of the Citeco brand is not clearly disclosed anywhere on the ladder or in-store. And on the Bunnings website it's sold like any other brand. So what does that mean for its price guarantee? JOHN DAHSLEN, CHAIRMAN, DAHLSENS: The 10% beat thing is illusionary because it only applies to a limited number of, uh, Bunnings products. DAVID WOODMAN, MITRE 10 OWNER: I wish consumers realized that in that instance that 10% price match guarantee means nothing. ANGUS GRIGG, REPORTER: The Citeco ladder is far from the only example where Bunnings has attached its 10 per cent price guarantee to a home brand product. Four Corners has identified dozens of examples of this in TV ads, and in-store. Some home brands at Bunnings, like Trojan tools, even have their own websites and helpful videos. TROJAN TOOLS VIDEO: Hi, I'm Adam Dovell and welcome to Trojans Tools for Tasks… ANGUS GRIGG, REPORTER: Regulator, the ACCC, told Four Corners that it could be misleading or deceptive if a home brand is marketed as though it's produced by a third party. MATTHEW STEEN, CHOICE: So this is where we test choice washing machines, uh, dishwashers, fridges, a whole bunch of different product categories for the Australian market. ANGUS GRIGG, REPORTER: Matt Steen is a director with consumer advocacy group, CHOICE. He oversees product testing. MATTHEW STEEN, CHOICE: What you can see here are the barbecues. These are two from Bunnings that we tested for the past summer. ANGUS GRIGG: How do they perform? MATTHEW STEEN, CHOICE: Uh, pretty average. They're pretty much middle of the road. ANGUS GRIGG: Is there anywhere on here where it actually says it's a Bunnings home brand product? MATTHEW STEEN, CHOICE: No, there's nowhere on the packaging or on the products themselves that actually says it's a Bunnings only product. You cannot find them elsewhere ANGUS GRIGG: In your opinion, what would be best practice for Bunnings as it relates to home brand and the 10% price guarantee? MATTHEW STEEN, CHOICE: I think Bunnings should basically make it more transparent about, uh, how people can actually get that 10% guarantee realistically get it, uh, which is not including their home brand products. And so incorporation of some kind of labelling into their packaging and products would be really useful. ANGUS GRIGG, REPORTER: Bunnings says it complies with all legal and regulatory requirements for product labelling. As for the price match guarantee, it says this can be applied to similar items and that it empowers staff to take a "common sense approach". Bunnings is pushing hard into home brands, and says it owns trademarks covering more than 9,000 products. Everything from Jumbuck BBQs to Marquee outdoor furniture, Craftright toolboxes, Mondella toilets and Happy Tails pet supplies. JOHN DAHSLEN:, CHAIRMAN, DAHLSENS It's been established quite clearly that you make more money out of home brands because basically you removed from the supplier all the costs they have in marketing and promoting their brand. ANGUS GRIGG, REPORTER: Then there are brands that are exclusive to Bunnings. For local hardware stores, these exclusive arrangements hurt their ability to compete. ANGUS GRIGG: So what brands can't you stock because Bunnings has the exclusive arrangement. DES WILLIAMS, MITRE 10: Well, one that comes to mind is Ryobi, which is a popular brand out there, and Irwin Speedbor bits, drills, screwdriver bits, all very popular. We can't even purchase them. Bunnings has those all exclusively. ANGUS GRIGG, REPORTER: Bunnings says exclusive brands are common across a range of channels and retailers, including at Mitre 10 stores. For suppliers, selling through Bunnings can be a risky proposition. While it gives them the opportunity to sell large volumes, the hardware titan often has the upper hand. GEORGE MINGIN, KOOKABURRA WORM FARMS: They had enormous power over us. GEORGE MINGIN: Do you want to come and look in the worm shed, what we call the worm cave… ANGUS GRIGG: Yeah, Wow. OK. ANGUS GRIGG, REPORTER: We're in regional Queensland to meet worm farmer, George Mingin GEORGE MINGIN; So you can see it's quite a large shed and before when we supplied Bunnings, this shed was chock a block full of crates like these bins that are here are just what's leftover from the Bunnings contract. ANGUS GRIGG, REPORTER: For 8 years George and his wife Katherine supplied live worms to Bunnings. They are one of the few suppliers willing to speak publicly about what it's like to deal with the hardware giant. GEORGE MINGIN: For many years I'd tried to get into Bunnings, but it was very, very difficult. And then suddenly this opportunity arose and we thought, you beauty, you know, we are in. And at first it was great. It was fantastic. ANGUS GRIGG, REPORTER: In the early years the couple felt they had a solid partnership with Bunnings. GEORGE MINGIN: We found that there was a lot of opportunity to grow the business. we changed our packaging considerably, made it much more attractive and more modern. Um, and all those little things that we did helped us to build a brand. And we basically tripled our volume. ANGUS GRIGG, REPORTER: That saw sales reach $1.3 million annually, and their margins were solid. Then things began to change. KATHERINE MINGIN: Little by little they started applying more pressure on their suppliers, certainly on us, and the expectations started to grow. Our buyers were starting to put the thumb screws on us. ANGUS GRIGG, REPORTER: And then COVID hit and like many businesses their costs rose sharply. GEORGE MINGIN: So that pushed all wages up, packaging costs, transport costs went through the roof. Um, so our margins eroded to literally nothing, we were running three overdrafts of $50,000 each, and they were all maxed out. ANGUS GRIGG, REPORTER: They were going broke fast, and had no other choice but to ask for a price increase. GEORGE MINGIN: We just, we couldn't continue. So we went to Bunnings and we told them where all of our prices had gone up, and we basically needed 30% price increase. KATHERINE MINGIN: We just instinctively knew that, um, asking for a price increase, however big or small was not going to go well. ANGUS GRIGG: What was the reaction to that? GEORGE MINGIN: We're working on it. We're looking at it. Um, but no explanation as to why nothing's happening. GEORGE MINGIN: And we kept contacting him, emailing, ringing, nothing, nothing, nothing. KATHERINE MINGIN: No, Bunnings don't need to give explanations. GEORGE MINGIN: For nearly 10 years, we had no price increase. And the business had been operating before we bought it, and they had no price increases. ANGUS GRIGG, REPORTER: After six months of being strung along, Bunnings handed down its decision. They were putting the worms contract out to tender. KATHERINE MINGIN: That was a bombshell that was really unexpected and a huge shock. GEORGE MINGIN: The buyer explained to us that they did not want to sacrifice their margins, and they did not want to put the pricing up. ANGUS GRIGG, REPORTER: At this point, Bunnings had done very well out of its partnership with George and Katherine. It purchased a bag of worms for $29.94 selling it to customers for $49.90. That's a 66 per cent mark up. But this does not capture all the profits flowing to Bunnings. GEORGE MINGIN: So you put your invoice in and you think, right, we've made really good sales this week. ANGUS GRIGG, REPORTER: Then comes what's known as rebates — money a supplier has to pay Bunnings, based on their sales. For George and Katherine at times this included: a volume rebate of up to 7 percent, 15% for new store openings, and if they wanted to be paid more quickly that was another 5 per cent. Then there's marketing fees, and you might even have to pay if your stock is discounted. For the couple the bill was about $8000 a month, or 7% of their sales. GEORGE MINGIN: To me, that was highway robbery. It was just plain highway robbery. ANGUS GRIGG, REPORTER: In the end, the couple lost the tender. After 8 years supplying to Bunnings, they were given just one week's notice to finish and then sent a $5000 bill for rebates GEORGE MINGIN: We spent hundreds of thousands of dollars building this up, particularly for worms, and now it's a waste. It's like a garage. Real shame. KATHERINE MINGIN: We ended up having put in a lot of hard work for absolutely no gain whatsoever. In fact, um, yeah, we've lost, we've lost everything that we put back into the business simply to supply Bunnings. ANGUS GRIGG: If Bunnings asked you to come back and start resupplying them, what would you say? GEORGE MINGIN: I'd give them the finger, literally. Um, not interested. This is one bridge that we are happy to burn. ANGUS GRIGG, REPORTER: Bunnings says it does not comment on specific supplier agreements, but conducts business with integrity, honesty and respect. Last year when similar allegations were raised by suppliers in a Senate Inquiry, it was not Bunnings CEO, Mike Schneider, who turned up to face tough questions. SENATOR NICK MCKIM: We've heard words to the effect that Bunnings treats suppliers like slaves and like numbers, not people. ANGUS GRIGG, REPORTER: Instead, Bunnings sent two mid-level managers. SENATOR NICK MCKIM: Like what's your, what's your response to those allegations? BUNNINGS REPRESENTATIVES: I think both my colleague and myself shared a level of disappointment to hear about those supplier experiences. SENATOR TAMMY TYRRELL: Is there any explanation as to why Mr Schneider hasn't appeared? BUNNINGS REPRESENTATIVES: We think we are best placed to work with this committee… SENATOR ROSS CADELL: What's the average markup you put on goods in your green life sector? BUNNINGS REPRESENTATIVES: Senator, with regards to that it's extremely diverse from products, from trees and shrubs to … SENATOR ROSS CADELL: An average isn't diverse. An average is a figure. I've never heard anyone give fewer answers than you in the last half an hour. ANGUS GRIGG, REPORTER: Bunnings CEO Mike Schneider — who earnt $4.7 million last year — also wouldn't sit down with Four Corner. The PR team told us that the timing didn't work for them. Meanwhile the allegations against Bunnings continue to build. The latest is from a former manager who is now blowing the whistle. For 20 years Jason MacMartin held senior positions at Bunnings. He's now taking them to court for unfair dismissal, after being granted whistleblower protections for making a series of allegations. ANGUS GRIGG: Jason MacMartin is in court today here in Melbourne. His case will allege Bunnings systematically underpaid sales staff, had a culture of bullying and most explosively, engaged in anti-competitive behaviour. ANGUS GRIGG, REPORTER: While it's before the court, Jason MacMartin won't comment. But in his statement of claim, he alleges Bunnings ignored his concerns around the underpayment of staff, and that he was bullied and demoted for raising these. Court documents show he was given whistleblower status over the bullying claims, as well as over allegations of anti-competitive behaviour within the sales team. ANGUS GRIGG, REPORTER: Bunnings has filed a defence to the unfair dismissal claim, and rejects allegations of underpayment, bullying and anti-competitive behaviour. It says they've already been thoroughly investigated and were not substantiated. ANGUS GRIGG, REPORTER: In Queensland, Bunnings is facing more legal action — this time from a one-time competitor turned supplier. TERRY BIRBILIS, FORMER SUPPLIER: This is where the factory was. We were here for over 20 years. ANGUS GRIGG, REPORTER: Terry Birbilis was once a local manufacturing success story. Now, he's suing Bunnings in the state's supreme court. TERRY BIRBILIS: We geared up specifically for Bunnings. We gave Bunnings priority of work. ANGUS GRIGG, REPORTER: Terry's family business specialised in cabinets and wardrobes. For years, they worked with both Bunnings and its rivals. Then, in 2019, Terry Birbilis signed a contract with the big box retailer, agreeing to give it priority. TERRY BIRBILIS: It was an exceptionally attractive commercial deal, something that anyone would be very honoured to look at. ANGUS GRIGG: Okay, so this is it? TERRY BIRBILIS: This is it Angus. This is one of the 200 plus kitchens that we did in this apartment for Bunnings that we supplied. ANGUS GRIGG, REPORTER: The deal between Bunnings and Birbilis obligated the retailer to purchase a minimum of $5 million worth of kitchens from Birbilis each year or 33 per cent of its sales in this category. TERRY BIRBILIS: It was all built to specifications for Bunnings, locally sourced timber. ANGUS GRIGG, REPORTER: Birbilis claims Bunnings staff told him the contract could eventually be worth as much as $75 million a year. In return, he agreed to install specialist manufacturing equipment and software. TERRY BIRBILIS: We were an avid supporter of the local supply chain. We bought a lot of product that created jobs. We employed a lot of apprentices. We ticked all the boxes for them, and then the sales just didn't happen. Nothing happened. ANGUS GRIGG, REPORTER: Birbilis says the failure of these sales to materialise had a catastrophic impact on the family business. TERRY BIRBILIS: It's meant the business has literally wound up. We're now pursuing it through the courts to try and get a resolution, but for all intents and purposes, the business has gone. ANGUS GRIGG, REPORTER: Terry Birbilis is suing Bunnings for breach of contract. ANGUS GRIGG, REPORTER: Bunnings disputes the allegations and says it's vigorously defending the case. It declined to comment further. ANGUS GRIGG: How does it feel coming back and seeing it all locked up? TERRY BIRBILIS: Heartbreaking. Genuinely heartbreaking. A lot of our staff were here for 15, 20 years. Our longest staff member was here for over 40 years. True waste of a great opportunity for so many people. ANGUS GRIGG: You'd think with its ability to pressure suppliers and extract efficiencies from its sheer size, Bunnings would be vastly cheaper than its competitors. But that's not what we found. We set out to do a price comparison on 95 basic hardware items. We checked prices at Bunnings and its closest competitors. It's a rough basket of goods, and by no means a complete analysis. But what we found did surprise us. ANGUS GRIGG: Take this Stanley Claw hammer. It's $15 50, whether you buy it at Bunnings or Mitre 10. And it's the same on big ticket items like this line trimmer. It's $299, whether you buy it at Bunnings or its competitors. And sometimes when Bunnings is cheaper, it's comically so. Take this Gorilla Grip glue. It's just 3 cents cheaper at Bunnings compared to Mitre 10. ANGUS GRIGG, REPORTER: When we did the comparison, the difference between Bunnings and its local rivals was literally small change. Over the 95 items we surveyed, Bunnings was only 2.3 per cent cheaper than Mitre 10, 2.4% cheaper than Amazon, and compared to Total Tools, it was only 1.7 per cent cheaper. For a consumer that works out to be a one to two dollar saving for every $100 they spend. But a company making such huge profits could offer much cheaper prices at the checkout. PROFESSOR CLINTON FREE: I think when companies start to dominate a market to that extent, they stop being focused on winning customers and loyalty and start being focused on extracting value from customers and suppliers. And I think that means doing things which are really about extracting margin from really from customers and from their suppliers. ANGUS GRIGG, REPORTER: Even when Bunnings or its subsidiaries — like Tool Kit Depot — offer discounts, there can be a catch. TOOLKIT DEPOT TVC: Tool Kit depot that's what it stands for, it's the place to go for all those tradies out there. ANGUS GRIGG, REPORTER: Last year internet sleuths noted Tool Kit Depot was promoting a $101 saving on a Milwaukee power pack for members of its loyalty program. It turns out the price was actually $459 more expensive than the most recent price members had been offered. ANGUS GRIGG, REPORTER: Dubious specials is something the ACCC is cracking down on in the supermarket sector. GINA CASS-GOTTLIEB, CHAIR, ACCC: The ACCC alleges that the price discounts as promoted were misleading because the discount was illusory. ANGUS GRIGG, REPORTER: But so far there's no talk of extending this scrutiny to hardware. Bunnings says the before and after prices were clearly marked on the Milwaukee power packs and it's committed to delivering the lowest prices to customers. Labor began the recent election campaign pledging to crack down on companies abusing their market power. PRIME MINISTER ANTHONY ALBANESE: We will make price gouging by Australian supermarkets illegal. Price gouging is when supermarkets are taking the piss. ANGUS GRIGG, REPORTER: The Coalition planned to go even further — they wanted the power to break up the supermarket duopoly and there was a push to include Bunnings. DAVID LITTLEPROUD: There should be an extension to Bunnings. In society you have to have a deterrence and a consequence. ANGUS GRIGG, REPORTER: And now, with a historic mandate, Labor must decide how far to go. Treasurer Jim Chalmers is hedging his bets on whether Bunnings should be subject to a code of conduct similar to that imposed on the supermarkets. TREASURER JIM CHALMERS: I'm aware that people have raised concerns about Bunnings, particularly when it comes to the nursery, part of the business. Our primary focus is supermarkets, but we've given the ACCC the resources that they need and the ability to recommend to us a broader focus, if that's warranted. PROFESSOR CLINTON FREE: It seems to me odd that Bunnings isn't subject to something like the food and grocery code of conduct that binds Coles and Woolworths. If we look at market share, Bunnings controls a share of the market, which is probably greater than Woolies and Coles combined in many important categories, yet it isn't really subject to the same scrutiny. ANGUS GRIGG, REPORTER: In the absence of strong competition policy or regulation, Bunnings is pushing into new areas to keep its profits growing, and its shareholders happy. For almost 150 years Dahlsens has been selling hardware in the Gippsland region of Victoria. JOHN DAHLSEN, CHAIRMAN, DAHLSENS: As builders go to work, they, they all queue up to get their supplies. So there's a period of hour, maybe two hours of frantic trading. ANGUS GRIGG, REPORTER: Today is no different. But who Dahlsens sell this hardware to has changed dramatically in recent years. JOHN DAHLSEN: The DIY component in our business across Australia would be, would be less than 5 per cent. ANGUS GRIGG, REPORTER: John Dahlsen is chairman of the Dahlsens' hardware chain. The family has more than 65 stores across the country but has largely exited DIY hardware and become a trade specialist. JOHN DAHLSEN: We had no future in, in retail hardware, just as, I don't believe anyone else has a future in retail hardware. We were unable to match the huge variety of product that Bunnings has. We are at Bunning's Mercy. ANGUS GRIGG, REPORTER: Having conquered DIY, Bunnings is now pushing further into the trade sector. JOHN DAHLSEN: You'll see there's no waste hanging around the floor or sawdust… ANGUS GRIGG, REPORTER: The hardware giant is attacking the roof truss and wall frame market. JOHN DAHLSEN: They decided this was a, a market they could disrupt. So they went and invested in these huge automated, uh, multimillion dollar plants, one in Melbourne and one in in Sydney. ANGUS GRIGG, REPORTER: John Dahlsen says Bunnings is heavily discounting this staple of the construction industry, seeking to grab market share from the independents. JOHN DAHLSEN: there's a huge overcapacity in the market, and our margins have shrunk. We're not, we're not a Bunnings money machine. We don't have the capacity to continue keep on quoting roof trusses at marginal rates for, for a long period of time. It is predatory. It's another example of small business, in our case, relatively small being, uh, unfairly damaged. ANGUS GRIGG, REPORTER: Independents say they have been able to hold the line against Bunnings in trade sales largely by providing better service at competitive prices. But John Dahlsen fears Bunnings has found their weak point. JOHN DAHSLEN: So if a builder gets a deep discount, say on a roof, truss and wall frame, he's more likely to buy the rest of the whole of the house. So it's not as if Bunnings has to discount everything, it just has to discount elements of the package to get the builder in. ANGUS GRIGG, REPORTER: Bunnings says new manufacturing technologies have allowed it to offer customers a better product with competitive pricing. Back in Jimboomba David Woodman is preparing to take Bunnings to court, in a last ditch effort to save his business. It's a legal long shot. DAVID WOODMAN, MITRE 10 OWNER: We won't give up. We owe it to the staff to fight and so we'll do what we can to stay open. We'll try and pivot. We'll take opportunities. If we see 'em, we'll try to stay open. but our experience has been that that won't be enough and that we'll end up having to close. GEORGE MINGIS, KOOKABURRA WORM FARMS: It's just, it's insane how big companies like Bunnings can get away doing what they do, but they do it because they have such a huge market share PROFESSOR CLINTON FREE: I think this is an important story to be ventilated and attention needs to go into a category which is very large, which affects lots of consumers, affects lots of suppliers, and they, they, they really should be subject to the same sort of scrutiny and regulation as our big retailers.
Times
07-05-2025
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