Bunnings expands automotive range by 20% as it takes on Repco, Supercheap, plus its facial recognition rollout plan

“When times are tough for the cost of living, having a really convenient offer where you’re normally shopping, that’s of value.

“The expansion of product categories is just about how Kiwis are changing. From the front gate to the back fence is how we think about the range in Bunnings.”

The business is set to add another 300 products in its auto range from several new brands, taking the total to roughly 1000 products.

Haines hinted this would include more automotive tools, towing and recovery gear, lighting and car technology and some marine products for boat cleaning, with more in-store bays dedicated to the category.

The auto category in New Zealand already has several competitors but is dominated by Repco (owned by US-based Genuine Parts Company) and Supercheap Auto (owned by Australian company Super Retail Group).

In its last full-year financial result, Genuine Parts Company reported total revenue of $568.5m and a profit of $26.9m for New Zealand, although this includes other businesses under its portfolio so the amount earned specifically by Repco is unknown.

As for Supercheap Auto, it reported total New Zealand revenue of $191.5m and a profit of $6.6m.

Other smaller retailers like BNT Automotive are also in the mix, with petrol stations, supermarkets and other multi-category retailers such as The Warehouse which offer limited ranges.

The automotive range expansion applies to 40 Bunnings stores across New Zealand.

It’s not the only category Bunnings has expanded into, with Haines referencing a growth in assisted living products such as handrails, as one example.

As to whether a downturn in construction was behind the move to other categories, Haines said it was just the evolution of how Kiwis were shopping.

“The commercial part of our business is really important, and there’s no lessening of investment in that area. There’s business cycles that go up and down with construction, but we’re really in it for the long term.”

Another initiative the company is progressing is its use of facial recognition technology.

The technology has continued to gain momentum in New Zealand’s retail sector, with high-profile companies including Foodstuffs South Island and Briscoe Group, utilising crime reporting software company Auror’s technology.

Bunnings NZ is implementing the software in its stores via a phased rollout, with the technology currently live in its Te Rapa and Hamilton South stores.

Haines said the trial had been underway for a few weeks, and Bunnings’ team was using the time to gain a full understanding of how the technology is being used.

“We have consultation with our team and the community around the use of it, and, once we’ve got that thorough assessment, we’re looking to roll out to the rest of New Zealand.”

Over the last four years, Haines said Bunnings experienced over 700 incidents of violent or aggressive behaviour in its stores, with 30% of the behaviour from repeat offenders.

“Any behaviour like that for our team and our customers is unacceptable. They should be able to come to work and to shop and feel safe.

“This type of technology means that you can intervene early and hopefully prevent a repeat instance.”

Bunnings NZ confirmed it would be commencing the second phase of its rollout on May 19, which will extend the technology to cover its remaining North Island stores.

Looking ahead, Haines says the business takes a long-term view as to how it thinks about its performance.

Bunnings currently has 51 stores in New Zealand, compared to competitor Mitre 10’s 80, and Haines is keen to see the business continue adding stores to its network, hinting that New Plymouth could be in line for a third new, larger location, while a new store in Taupō is set to open in early 2027.

“We don’t really have a target of stores. We want to be successful in this market and make sure we’ve got the right properties in the right locations.

“We do have towns in New Zealand where we would love to open a Bunnings and that’s what we’re working on. I would love it to be as quick as possible, but we’re just working through that over time.”

Haines also hinted at more to come for the business’s e-commerce platform, with new announcements to come later this year.

In an interesting side note, Bunnings NZ didn’t offer online shopping until 2020, with Haines putting the decision down to a flood of inquiries during the first Covid lockdown.

Bunnings recently announced it was launching a dedicated online store for customers in Fiji, featuring a wide range of 20,000 curated products selected to suit online ordering and cross-border delivery.

Orders will be fulfilled from Bunnings’ Australian distribution centre and delivered through international shipping partners.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.