State of the Nation 2016

By NZHJ Team December 15, 2016 Hard Talking - Industry Interviews

What’s the outlook for the next few months? What are the main players prioritising? We asked our captains of industry. Read on…

To view a PDF of the complete feature as it appeared in NZ Hardware Journal magazine, click the download button at the bottom of this page.

Bunnings NZ

Jacqui Coombes (GM NZ)

What will be Bunnings’ key points of difference during the next key months of this year (Dec-March)?

Every month is key for us! Whilst we’ve grown over the years, we’ve retained a family feel and we see this as our real point of difference. Our success is built around our team members’ contributions, recognising and rewarding their efforts and providing a fun, satisfying and safe workplace.

We have over 3,700 team members across New Zealand now and have plans for further investment and job creation over the next 12 months, with the opening of our South Hamilton, Grey Lynn and Hastings stores.

What are the biggest factors currently influencing the success or failure of the hardware channel during this period?

The weather always plays a part so we need to ensure we deliver on the whole customer experience! We will also continue to engage with the local communities in which we operate, which is integral to our business.

This includes activities such as fundraising sausage sizzles, hands-on projects, local fundraising activities, community workshops and product contributions, supporting a widespread and diverse range of local, regional and national groups across New Zealand.

Which aspect(s) of the business will be your key focus in the next 12 months?

As with the last 12 months, there is a large growth and improvement agenda across all our business areas and we are firmly focused on the delivery of this.

 

BUNNINGS NZ BUSINESS SNAPSHOT

NZ annual revenue $1.01b (Year ended June 2016)

% change on previous year +12.2%

Net Profit After Tax $27.2m (+126.4%)

Current number of stores 52 (26 warehouses, 19 small format, 7 trade centres)

 

ITM

Scott Duncan (CEO)

What will be ITM’s key points of difference during the next key months of this year (Dec-March)?

ITM’s key focus continues to be our relationships with the trade and ensuring that we are making them and their businesses a success. We are excited to be launching our new ITM App which we expect will become a key tool for every builder managing their LBP points. [See more here on the ITM App.]

What are the biggest factors currently influencing the success or failure of the hardware channel during this period?

Relevance and service to the trade. ITM’s success is down to the strong owner to owner relationship we have with the trade and a constant focus on understanding what the trade require to make businesses, in their part of the country. Focusing on this keeps ITM relevant to our customers’ business and means we are are part of their success out there on the job where they are doing the hard yards.

Which aspect(s) of the business will be your key focus in the next 12 months?

Continuing to understand the trade builder’s needs and making sure ITM are focused on these needs and making the trade customers life easier (and ensuring we all have some fun on the way).

 

ITM’S NZ BUSINESS SNAPSHOT

Last NZ group sales $800m (estimate)

% change on previous year Approximately +10%

Current number of stores 90+ ITM stores and 26 frame & truss plants

 

Mitre 10 NZ

Neil Cowie (CEO)

What will be Mitre 10’s key points of difference during the next key months of this year (Dec-March)?

Our ability to engage with our customers is a strength for us, as at this time of year people are busy, there are many retail messages out there and having communities with some of the highest engagement levels of any in New Zealand is beneficial. Our social channels and Mitre 10 Clubs give us the ability to more effectively communicate with our customers.

We are also confident in our range – we’ve got some fantastic supplier partners that are working with us to deliver great products. Our sourcing teams are on the pulse of what’s new and keeping our offer competitive for our customers. For this summer season, we’ve got the world’s best BBQ brands and our largest ever outdoor furniture range. We’ve got a new agreement with Applico for the renowned Whirlpool appliances and are seeing some great innovations across other categories.

On the trade side, we’ve also got the newly launched Trade Hub that can really change the way these customers do business.

What are the biggest factors currently influencing the success or failure of the hardware channel during this period?

Relevance and staying in tune with customers. Retailing in any sector is all about the customer and if you don’t respond to their wants and needs you’re likely to see some trouble.

Which aspect(s) of the business will be your key focus in the next 12 months?

We will continue to work hard to stay in tune with the DIY and Trade needs of New Zealanders through staying close to our customers and understanding the local market. We’ll be evolving our business to continue to take advantage of technologies and to ensure we are delivering an end-to-end experience, and that we are integrated into the ever-evolving digital lives of New Zealanders. As we’ve already had success in a number of these areas, the year ahead will be a case of looking to build on these successes and offering even more rewarding experiences for our customers.

 

MITRE 10 NZ BUSINESS SNAPSHOT

NZ group sales $1.24b (Year to end June 2016)

% change on previous year +9.25%

Current number of stores 81

 

Placemakers

Bruce McEwen (GM)

What will be PlaceMakers’ key points of difference during the next key months of this year (Dec-March)?

PlaceMakers’ key points of difference in the short term remains centred around our customers, providing market-beating service every day. To do this effectively we continue to focus on:

  • Having the best people, well trained and engaged in what they’re doing.
  • Deep relationships with preferred supply partners.
  • Delivering fantastic service, every day.

What are the biggest factors currently influencing the success or failure of the hardware channel during this period?

PlaceMakers is achieving unprecedented success off the back of a busy market and a tight focus on the things that make it easier for our customers to do business with us. The biggest factors that will influence future business performance in the short/medium term are:

The market, particularly within the busy golden triangle of Auckland/Hamilton/BOP, and the ever changing dynamics of the Christchurch rebuild activity.

  • Having the best people who can operate effectively within the complexities of the market.
  • A relentless focus on our customers, understanding their challenges and delivering solutions to meet their needs.
  • The need to innovate to continue to develop and evolve the business for all conditions in the future.

Which aspect(s) of the business will be your key focus in the next 12 months?

Our key areas of focus to deliver on our strategy over the next 12 months will largely be a continuation of what has delivered success in the last 12 months; primarily:

  • An obsessive focus on enhancing customer service.
  • Further developing our installed services business offerings.
  • Deepening relationships with preferred suppliers to bring solutions and key category innovation.
  • Having the right people in the right place delivering service and solutions.

 

PLACEMAKERS' BUSINESS SNAPSHOT

NZ annual revenue $1.17b (Year to end June 2016, PlaceMakers only)

% change on previous year +11%

% change same store sales +10.8%

Current number of stores 60 and 8 frame & truss plants

share this