The specialty chain for tradies and serious DIY-ers snapped up by the Wesfarmers-owned hardware giant is heavily focusing on one state before expanding.
The Adelaide family business that Bunnings bought two years ago has been given a new lease of life, and while the grand plan is for national expansion, the focus will be on one state for now.
The Wesfarmers-owned retail giant got the keys to Adelaide Tools in 2019, acquiring six stores in South Australia and testing out new concepts at one in Parafield before rebranding as Tool Kit Depot in September this year.
The specialty chain for tradies and hardcore DIY-ers has rapidly rolled out three stores in Perth since last month – Belmont, Rockingham and Malaga – with a fourth set to open in Mandurah in coming weeks.
Commercial chief operating officer Ben McIntosh said the ambition was to expand the network to 75 stores around the country, but more stores would be added to Western Australia initially, with the state’s industrial economy making it an obvious choice.
“Remember that Bunnings has a very, very strong DNA in Western Australia,” Mr McIntosh told NCA NewsWire.
“We know the market well.
“It goes without saying from a macroeconomic point of view that the West Australian economy is booming … the mining influence is strong, it was obviously sheltered from a lot of the Covid shutdowns and uncertainty, which is obviously an advantage.”
Asked whether it had been a slow start since the acquisition, Mr McIntosh said the first few months were spent understanding the old Adelaide Tools business and its customers.
“I am very passionate about being a leader that inspires a team to earn our way into a market, not just arrogantly expect to win,” he said.
“It was a successful business – hence why we liked it, hence why we wanted to buy it. We then thought, ‘What is the future, where do we take the business for the next generation?’
“We want to make sure we are doing this in the way that is right and that is earning our stripes with our customers first, then talking about bold expansion after that.”
The initial expansion only came after the Parafield experiments proved successful, Mr McIntosh said.
Covid-19 had presented some challenges, with Mr McIntosh unable to re-enter WA since March.
The stores represent a combined investment of more than $25m and carry 10,000 high-end products across power tools, outdoor power equipment, hand tools, storage, workwear, welding equipment, construction and safety equipment.
Each store will also have a battery bar and tool repair workshop as well as offering tools for hire.
“It’s all about giving that specialised knowledge, that specialised service and also the full range of both brands but the commercial-grade models of the brands (and) highly specialised woodworking equipment that the Bunnings environment just doesn’t cater for,” Mr McIntosh said.
“We have specifically trained team members that know woodworking, that woodworking is their passion and they can have a good conversation about all things woodworking.”
Mr McIntosh was tight-lipped on how long it would be before stores started popping up on the east coast, saying “a good amount” would fling open their doors in WA first.
“We’re not going the popular trod path (yet), which is Sydney or Melbourne,” he said.
“We didn’t want to follow a normal formula. We wanted to invest where we think we can earn people’s trust and we think Western Australia ticked that box.
“It’s not an eastern-focused company. We’ve got more stores to open in Western Australia first.
“We’ve got more stores to open in South Australia – that’s focused on rounding out the network in SA more than just Adelaide.”
Originally published as Bunnings acquisition Tool Kit Depot defies well-trod east coast path with big WA rollout underway
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