Hardware stores go head-to-head

Rod Caust and Derek Powell at the new Bunnings Warehouse in Glenfield. Photo / Paul Estcourt

The new $37 million Bunnings Warehouse Glenfield has opened right next door to a Mitre 10 MEGA on Auckland's North Shore.

The two DIY hardware stores are going head-to-head to the point that the back of Bunnings' 1.1ha store is now abutting Mitre 10's carpark.

John Hartmann, Mitre 10's NZ general manager, said his organisation had been taken aback.

"We were a little surprised at their choice of location but it's not having any noticeable impact on customer numbers going through our store and we'd expect that to continue. We welcome the competition," he said.

Derek Powell, Bunnings Glenfield complex manager, said relations between the neighbours were cordial and he sees benefits in creating a hub so customers can compare prices and ranges.

Rod Caust, NZ general manager, said the site was ideal: "You can't get better than this, on the corner of two main roads with good access and visible from the motorway."

Bunnings, owned by ASX-listed Wesfarmers, yesterday announced it would double its Auckland presence, building a further four to six stores in the next five years.

PJ Davis, Bunnings' Melbourne-based chief operating officer, visited for yesterday's celebrations to mark last Monday's soft launch.

"This is the 299th Bunnings store across Australia and New Zealand," Davis said, telling guests of how the chain was founded in Fremantle 125 years ago.

The big Glenfield shop is only a shadow of Australasia's biggest Bunnings: an 18,000sq m store at Cannon Hills south of Brisbane, he said.

The Glenfield store employs 153 people and will pay a $2.2 million annual wage bill.

Powell said 3000 people had applied for jobs and recruitment personnel at other Auckland Bunnings helped the new store find staff, he said.

The store is New Zealand's 21st Bunnings warehouse and Caust said Auckland was a natural market due to its size.

"This is the sixth Bunnings Warehouse to open in Auckland," he said.

Dan Kneebone, property and development manager, said last year was Bunnings' busiest when six new stores were opened including in Wellington Central, Napier, Te Awamutu and Dunedin. Earlier this year a Bunnings opened at Lyall Bay in Wellington and in Auckland's Mt Wellington.

"We're currently building in Hawera and Blenheim and the next two cabs off the rank will be Takanini and Silverdale," Kneebone said.

Bunnings came to New Zealand 10 years ago, buying Benchmark Building Supplies. The company has spent more than $500 million here and employs about 3000 staff.