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Bunnings Australia notes Aldi's influence on its web traffic

Bunnings store and hammer 725 x 500

At yesterday’s Wesfarmers Strategy Day in Sydney, Bunnings CEO John Gillam told investors that the business is looking to beat its competitors by learning from their product ranges and marketing techniques

The MD of Bunnings Australia – Michael Schneider – said that the company had noticed a regular spike in website visits which coincide with the release of the weekly Aldi Special Buys catalogue.

The German retailer has emerged as a surprise new competitor in the Australian home improvement sector, offering limited runs of discounted products, twice a week, on Wednesday and Saturdays. The nature of the ranges on offer vary dramatically from week to week, covering a broad range of categories. Promotions often include garden, DIY and home improvement goods, outdoor furniture, mops, buckets, storage tubs, lighting, heaters and fans.

Recently, Aldi offered customers a cordless drill for AUS $89.99. Bunnings reacted by offering a Ryobi drill with different specifications at the same price.

Mr Schneider said, “It’s good for us because competition drives you to go harder at what you want to do,” adding, “We’re very quick to respond in terms of putting products in front of customers.”

Aldi told an Australian publication SmartCompany that the Special Buys are themed around activities that customers are likely to be undertaking at that time of year, which prompts them to visit the stores. The spokesperson added: “Our Special Buys deliver hard to beat value because our streamlined business model enables us to keep our prices low. Our logistics and supply chain operate with world-class efficiency, keeping delivery routes short and employing best practice warehouse techniques.”

Analysts have suggested that Bunnings is trying to convey that Aldi’s deals aren’t as special as they might seem, but it has been noted that the nature of the shopping experience differs between the two retailers.

Retail Expert David Gordon of LZR Partners said that consumers tend to visit Bunnings to purchase several items at a time, whereas those visiting Aldi will do so to make a single purchase of an item on promotion.

Source : Insight DIY

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23 June 2016

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