Hardware retail giant Bunnings has addressed concerns regarding its market dominance, stating that it only holds a quarter of Australia’s garden plant market. This clarification comes in response to farmer groups’ claims that Bunnings monopolizes the sector, controlling around 70 percent of the market.
Bunnings executives emphasized that they do not have a monopoly in the industry. Laura Gaspert, an ethical sourcing manager at Bunnings Group, revealed during a recent Senate hearing that the company’s share of the greenlife industry’s $2.9 billion sales is expected to be 25 percent. Additionally, Bunnings works directly with 220 out of 1,200 growers operating in Australia, demonstrating the diversity of channels available to suppliers.
Bunnings’ Supplier Agreements Under Scrutiny
The Senate hearing also delved into Bunnings’ agreements with suppliers. While some farmers characterized these agreements as non-binding norms, Bunnings representatives clarified that they are legally enforceable contracts. These agreements do not mandate a specific amount of product purchases from growers but provide sales data to aid in production planning.
Despite allegations of purchasing commitment fluctuations, Bunnings defended its practices, emphasizing the importance of maintaining strong supplier relationships for mutual benefit. The company’s focus on transparency and communication with suppliers aims to support growers in planning and forecasting their production.
In response to concerns raised by some suppliers, Bunnings reiterated its commitment to fostering long-term, viable relationships with producers. The company emphasized the value of supplier collaboration and expressed its dedication to supporting the sustainability and success of its supply chain partners.
