Bunnings: the power and the profitsBy Angus Grigg, the Business Reporting Team's Emilia Terzon, Elise Potaka, and Ben Schneiders Four CornersTopic:Businesses3h ago3 hours agoMon 12 May 2025 at 5:04amBunnings has become one of Australia's most profitable retailers. (Four Corners/Alistair Kroie)abc.net.au/news/how-did-bunnings-get-so-big/105265412Link copiedShareShare articleIt's hard to get your head around just how big and profitable Bunnings has become, so here are seven numbers that show how quickly it has come to dominate the Australian hardware sector.$18.97 billion Bunnings Group is super profitable.It made $18.97 billion in revenue in 2024. That's five times more than its nearest competitor.That delivered the group $3.2 billion in profits before taking out tax, interest and depreciation.Last year its profit margin was 16.8 per cent, that's nearly double that generated by Coles or Woolworths — criticised by the ACCC for being among the most profitable supermarkets in the world.Coles had an 8.9 per cent profit margin last year, and Woolworths had a 9.9 per cent profit. 69.2 per cent return on capital It's hard to picture Bunnings' profitability.To break it down, let's look at Bunnings return on capital.If someone was to put $10 in the bank they would earn about 40 cents every year from interest.For every $10 Bunnings invests securing land, building stores, and buying stock it gets back $6.92 every year. Coles and Woolworths' return on capital is less than half that.310 stores As the new millennium began Bunnings had $1.49 billion in sales across 47 stores.Today its revenue is about 13 times that, and it has 310 stores in Australia.Its empire also includes stores in New Zealand, Beaumont Tiles and Tool Kit Depot — both acquired with no objection from the ACCC.And it's continuing to build new warehouses.17 per cent Bunnings's market share is highly contested.Will Bunnings 'beat it by 10 per cent'? It's not always so simpleBunnings is Australia's most trusted brand, but are customers actually getting the deal they think they are?Read moreResearch firm IBISWorld estimates its hardware market share is somewhere above 33 per cent. One rival claims it could be as high as 70 per cent.That's not the number Bunnings uses.It says it's market share is just 17 per cent.How does it get to this number?The company claims it competes against almost everyone: Mitre 10, Coles, Woolworths, Kmart, JB Hi-Fi, and Myer.Even Spotlight, Amazon, eBay, Kogan, PetStock, and Petbarn.Ultimately, it's impossible to independently verify this figure, because Bunnings won't release detailed data.66 per cent mark-up Suppliers say Bunnings is making sizeable profits from their products. Bunnings purchased a bag of worms from a farm in regional Queensland for $29.94 then sold it to customers for $49.90.That's a 66 per cent mark up.Then there are the rebates.In recent years, suppliers have been charged:a volume rebate between 1.5 per cent and 7 per cent,15 per cent 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 a supplier could even be charged if their stock is discounted.9,000 The hardware giant has more than 9,000 home brand products.These are products manufactured exclusively for Bunnings, where the hardware giant owns the trademark.This isn't clearly disclosed on its packaging, in-store, or on the Bunnings website. Some home brands even have their own website.Bunnings' brands include everything from Trojan tools, Jumbuck barbecues and Craftright toolboxes to Marquee outdoor furniture, Mondella toilets and Happy Tails pet supplies.This raises questions about its price famous guarantee which urges customers to "find a cheaper price on the same stocked item, we'll beat it by 10%."But how can you find a product cheaper elsewhere if it's only sold by Bunnings?Bunnings says it complies with all legal and regulatory requirements for product labelling and "empowers" staff to take a "common sense approach" and price match on similar items.1994 Bunnings wasn't 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.A year before then Bunnings took over McEwans hardware, then in 2001 it moved on BBC Hardware, also trading as Hardware House, giving it a national footprint.The competition regulator, the ACCC, waived through the deal without a single objection.Watch Four Corners' Hammered on ABC TV and ABC iview.Posted 3h ago3 hours agoMon 12 May 2025 at 5:04am, updated 1h ago1 hours agoMon 12 May 2025 at 6:31amShareCopy linkFacebookX (formerly Twitter)Related storiesThe 9,000-product catch behind Bunnings's biggest price guaranteeTopic:Retail IndustryPhoto shows A person in a Bunnings apron stands in a Bunnings aisle.Related topicsACTAustraliaBusinessesNSWQLDRetail IndustryVICWATop StoriesUS and China agree to put 90-day pause on 'reciprocal' tariffsLIVEPhoto shows Donald Trump holds a list of tariffs by country.Anthony Albanese unveils new-look frontbenchTopic:ElectionsPhoto shows Anthony Albanese waves inside parliament house.Littleproud stays on as Nationals leader after party voteTopic:Federal GovernmentPhoto shows David Littleproud was re-elected leader of the NationalsIs Chalmers prepared to follow Keating into the 'slaying' business?AAnalysis by Alan KohlerPhoto shows Jim Chalmers walks into QT smiling.One child is slapped, another vomits metal hooks: Inside an Australian childcare giantTopic:Child CarePhoto shows A still from a Snapchat video shows a baby on a bouncer crying.Popular nowAnthony Albanese unveils new-look frontbenchTopic:ElectionsPhoto shows Anthony Albanese waves inside parliament house.Queensland MP set to be booted from state Labor caucus Topic:State and Territory ParliamentPhoto shows Jimmy SullivanAmelia Hamer concedes Kooyong after tense contest with Monique RyanTopic:ElectionsPhoto shows A composite photo of a blonde woman on the left and a brunette on the right, both smiling.Top StoriesUS and China agree to put 90-day pause on 'reciprocal' tariffsTopic:Stock MarketPhoto shows Donald Trump holds a list of tariffs by country.Anthony Albanese unveils new-look frontbenchTopic:ElectionsLittleproud stays on as Nationals leader after party voteTopic:Federal GovernmentIs Chalmers prepared to follow Keating into the 'slaying' business?AAnalysis by Alan KohlerOne child is slapped, another vomits metal hooks: Inside an Australian childcare giantTopic:Child CareJust InQueensland MP set to be booted from state Labor caucus Topic:State and Territory Parliament34m ago34 minutes agoMon 12 May 2025 at 7:52amUS and China reach deal to 90-day pause on 'reciprocal' tariffsTopic:Business, Economics and Finance2m ago2 minutes agoMon 12 May 2025 at 8:25amAmelia Hamer concedes Kooyong after tense contest with Monique RyanTopic:Elections1h ago1 hours agoMon 12 May 2025 at 7:23amIndian legend Virat Kohli announces retirement from Test cricketTopic:Cricket1h ago1 hours agoMon 12 May 2025 at 7:07amMore Just InBack to top