‘Change is coming’:Bunnings boss says engineered stone ban provides certainty

Bunnings managing director Michael Schneider has said the hardware retailer’s move to stop selling engineered stone has been widely embraced as the DIY giant shuffles its product pipeline to cater to cost-conscious customers.

Schneider said it was clear that state and federal governments were moving towards a ban on the material,following a recent report from SafeWork Australia that stated a blanket prohibition was the only option to protect workers and tradies from the deadly disease.

“When you can see the change is coming,then you’ve got obligations to your supplier – ‘we’re not going to buy this product from you,can we work with you to develop a different product’,” he said.

Hardware chain Bunnings managing director Mike Schneider said the company’s move to stop selling engineered stone has been welcomed by governments.

Hardware chain Bunnings managing director Mike Schneider said the company’s move to stop selling engineered stone has been welcomed by governments.Supplied

“What’s absolutely crystal clear is just how devastating a disease silicosis is,so particularly with where government was going,we just wanted to be in a position to say,dear customer,dear supplier,you’ve got certainty.”

Engineered stone makes up “quite a small component” of the overall mix of kitchen benchtops sold at Bunnings,with timber and laminate very popular options.

“Sold the way we were selling it,there was no risk to the consumer,there was no risk to the people working with it,but we do recognise that this is a real challenge for the industry,” said Schneider.

“We’ve received very positive feedback from both a variety of state and federal governments to say[it’s] really clear you’ve provided certainty while we work out what we’re going to do from a legislative point of view.”

He noted global homewares giantIKEA made a similar move a day after Bunnings’ announcement and urged others to do the same. “Hopefully,the rest of the industry plays it the same way in creating certainty because at the end of the day,consumers need to know what they can and can’t buy,and suppliers need to know whether they should or shouldn’t be investing in products.”

Bunnings is part of the $60 billion retail giant Wesfarmers that also operates Kmart and Officeworks,with the latter two brands delivering strong returns for the 2023 financial year. Bunnings’ earnings uptick wasa little slower,at 1.2 per cent,as consumers grew more cautious about big-ticket purchases and renovations off the back of rapid rate hikes.

Bunnings boss Michael Schneider said the retailer expanded its pet range earlier this year.

Bunnings boss Michael Schneider said the retailer expanded its pet range earlier this year.Supplied

In response to cost of living concerns,the hardware retailer is eager to spruik its newly expanded cleaning range in a bid to capture customers that Schneider said,“have a very,very sharp sense of what value looks like”. Bunnings has added more than 200 new products to its cleaning category from brands like Omo,Dettol,Cold Power,Sard and Hoover to let customers bulk buy at cheaper prices.

It follows a similar move togrow its range of pet products,which is becoming a more competitive segment afterWoolworths announced its intention to acquire a majority stake in Ballarat pet goods business PETstock.

“We’ve been blown away by the uptake from customers,” Schneider said,adding that customers were quick to break down the price of items and make purchase decisions accordingly.

But price alone isn’t enough to win customers. “Cheap isn’t good ... customers are looking for real value for money.”

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Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.

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