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In its response to the interim Emerson report, Woolworths said the law, if made mandatory, should apply to “all major grocery retailers and wholesalers” in Australia, naming Costco, online giant Amazon, Chemist Warehouse and Bunnings as retailers that should To become signatories. .
“The Australian grocery retail market is now undoubtedly broader than what has traditionally been defined as supermarkets,” the $39.5 billion supermarket giant said in its report to Emerson Review.
As cost of living pressures impact household budgets, Bunnings has recently expanded its range of pet and cleaning products as customers buy items in bulk to save money.
Bunnings boss Michael Schneider with dog Henry.
The code should be evaluated through an “industry lens” and not by product, Schneider said, noting that supermarkets may, from time to time, sell power tools.
“Companies will engage in adjacent categories, either periodically or build them out, but that does not make us a supermarket, and that is a fundamental difference.”
In the first half of financial year 2024, Bunnings' revenues increased by 1.7 per cent over the period, with online sales up 5.1 per cent. Its annual revenues exceeded $18.5 billion in fiscal year 2023.
Bunnings accused of abuse of market power
Meanwhile, Greenlife Industry Australia (GIA) chief executive Joanna Cave said Bunnings had abused its market dominance by putting “very subtle” and “manipulative” pressure on farmers by dictating prices and demanding changes at short notice. , and reserve the right not to purchase if they do so. Do not comply.
“It seems ridiculous for Bunnings to stay outside the rules and not be subject to any of the rules,” Cave said, adding that the big box retailer has more in common with major supermarkets than local garden centres.
Plants, gardening equipment, and flowers are covered under the Food and Grocery Code of Conduct. Miter 10, operated by Metcash, falls under the code. Metcash has a market capitalization of $4.3 billion, while Bunnings parent Wesfarmers has a market capitalization of $76.2 billion.
“They get a completely free pass…we say the code fixes that with one stroke of the pen,” Keefe said, and wants Bunnings to be subject to the same stringent penalties that supermarkets would face if they violate the code.
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Cave said Bunnings' market dominance had created a power imbalance in its relationship with plant suppliers and growers, who felt pressured to accept trading terms on which the hardware giant reserved the right not to buy any plants.
Farmers also felt pressure to sell their plants at unsustainable prices or risk losing Bunnings as a customer, Cave said.
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