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A furious small business owner has slammed Bunnings for wiping out family-run stores after the hardware giant announced it was massively expanding its range of pet products.
Bunnings will expand its pet merchandise range from a few hundred items, including dog beds and kennels, to 1,000 products across its national network by late March.
The move is likely to be a boon for Aussie pet owners, with the warehouse chain already popular for its convenience, affordable price and famous Saturday sausage sizzles.
However, business owners have accused Bunnings of ruining the industry, and experts have warned big box stores have an unfair legal advantage over small businesses in the ‘war’ for customers.
Emmanuel Devo’s family have owned Junction Pet’s Pantry in Sydney’s Bondi Junction since the 1970s but it is now set to close within four weeks.
‘The problem with all these big companies is they’re reducing industry diversity,’ he told Daily Mail Australia.
‘We used to have more suppliers that offered more specialty products.’
Bunnings will expand its pet merchandise range from a few hundred items, including dog beds and kennels, to 1,000 products across its national network by late March (stock image)
Bunnings’ latest move is likely to be a boon for Aussie pet owners, with the warehouse chain already popular for its convenience, affordable price and famous Saturday sausage sizzles
Emmanuel Devo’s family have owned a pet store in Sydney’s Bondi Junction since the 1970s but it is now set to close within four weeks
‘Now they don’t have enough small stores to sell special items to so those products just become unavailable.
‘You have to sell specialty products, you have to give people a reason to come into your store. Companies like Amazon offer free delivery options, we can’t compete with that.
‘They have these systems that rip off employees in exchange for offers, like free delivery.
‘They have the illusion of cheapness.’
His cousin Spiros Gial has also seen his small business collapse recently.
Mr Gial’s family owned a shop in Maroubra since 1952 but have now been bought out by developers after a long legal battle.
‘These shops used to buy you property, now it’s hard to make ends meet,’ he said.
Consumer experts have also warned that the expansion of so-called big box stores could spell trouble for small retailers.
Andrew Terry, Professor of Business Regulation at the University of Sydney Business School, told Daily Mail Australia: ‘When Bunnings comes to town, it’s bad news for local businesses.
Junction Pet’s Pantry has been in Sydney’s Bondi Junction since the 1970s but will close within weeks
Several consumer experts have also warned that the expansion of so-called big box stores could spell trouble for small businesses
‘The local firms look to our laws to protect them but the reality is that they aren’t there to protect small businesses. They are there to enhance consumer welfare and competition and this allows firms like Bunnings, Coles and Woolworths to thrive and get more customers.
‘Bunnings has done very well with its sausages on Saturdays and they are very smart with their market research. They know what to do for their market and brand.
‘It used to be that small businesses would be open longer and would have that personal relationship with customers. However, now you have extended shopping hours and special deals and promotions from the big brands.
‘At the end of the day, the market is war. It is a war for customers and they want to win that war. It’s all about competition and by introducing 1,000 new pet lines, Bunnings wants to win.’
His comments were echoed by several other experts, who called on the government to ensure there was more protection in place for small businesses against expanding behemoths like Bunnings.
Sharon Latour, an international consumer and marketing consultant said the Australian market favours larger firms.
‘The way that the Australian market is structured favours the large brands like Bunnings as the business expansions are paired with large real estate investments and it, unfortunately, means that smaller privately owned brands get pushed out of the market.
‘The cost of doing business and the taxation scheme for smaller businesses is stifling for all industries in Australia, which is why our manufacturing is dying and our hospitality businesses are closing by the dozens every day.
‘There needs to be a reform to allow smaller businesses to breathe a bit and be able to compete, otherwise, we will keep seeing the Bunnings of the world take entire sectors.
‘Is the future of Australia large businesses and chains? The amount of ‘for lease’ signs in all major cities certainly points to that.’
However, some have suggested that the pet industry will adapt and thrive in light of the Bunnings expansion.
Anthony Ramsey, president of the Pet Industry Association of Australia, believes pet retailers are under less threat than they fear.
Though the move is likely to be a boon for Aussie pet owners, there are fears it could pit the huge chain against smaller specialty pet stores
‘It is not surprising Bunnings has decided it wants a piece of the $13 billion pie that is the Australian Pet Industry.
‘The roll out of large corporate businesses operating chain stores and online only pet product retailers has already seen a significant reduction of the number of independent pet businesses over the past 15 years.
‘Those that have survived have done so because of their points of difference, being their service, advice, range, quality of products and the instore retail experience. It is highly unlikely Bunnings will compete with these types of businesses that are already so good at what they do.
‘I’d imagine Bunnings will target the consumer that already shops in large big box chain stores not independents. Independent pet business also have the ability to sell families the pets themselves, be it a budgie, puppy or kitten, guinea pig, lizard or fish.
‘This is a further string to the bow of many independent pet stores and an that corporate business will never be able to compete against specialised pet retailers.
‘All in all, while I can appreciate the concerns some businesses may hold seeing Bunnings enter the pet industry, I genuinely believe they have far less a threat to their business than they may think.’
Graeme Samuel, former head of the ACCC, also said that pet companies have less to fear than they think.
Bunnings boss Mike Schneider (pictured) said the new direction is in line with ballooning pet ownership over the last three years
He said: ‘It’s all horses for courses. Small businesses will adapt, they always have. Consumers will have to weigh up if they want to pay a bit extra for a more personal service or if they would rather pay less for convenience and ease.
‘There will always be a baker’s shop or a butcher or grocer’s near these chains that will be popular.
‘That’s the trick with these places. They know that customers who want a more personal touch will come to them, whereas some people will want the ease of places like Bunnings.’
This is not the first time Bunnings has been accused of shutting down smaller businesses.
In 2015, a GDC Advisory forecast blamed Bunnings and other big box retailers for a collapse in the number of hardware stores in Australia.
The forecast suggested the number of hardware stores in Australia would fall from 20,920 to 14,050 over the next 10 years, with 6142 independent retailers set to close by 2024.
Speaking at the time GDC Advisory director Geoff Dart said Bunnings, as well as Woolworths and Mitre 10, were intensifying competition.
New products on offer at Bunnings will include food and toys for dogs, cats and birds which will sit in a 40-square-metre selling space.
Bunnings boss Mike Schneider told Daily Mail Australia the expansion wasn’t necessarily bad news for small businesses.
‘Pets is a really exciting growth category, and we believe there’s ample room in the market for larger operators and speciality providers,’ he said.
‘The role of pets is becoming increasingly important for many Australians, and we’re looking forward to joining the range of businesses that cater to pet lovers to offer customers even more choice.’
Mr Schneider said the new direction was in line with ballooning pet ownership over the last three years.
Bunnings has allowed pets into its stores since 2015 as long as they are carried, secured on a lead or in a shopping trolley.
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