Grim reality of what happens when Bunnings comes to town

A family-run hardware store is closing its doors after more than 30 years – with devastated locals blaming a nearby Bunnings. 

The independent Mitre 10 store in Byron Bay announced it was closing towards the end of February in a Facebook post. 

It told customers that it was having a ‘liquidation sale’ and that ‘everything must go’. 

Its closure makes it the latest victim of big box business – after a previous report predicted that more than 6000 independent retailers are set to close by 2024 because of bigger firms like Bunnings. 

The GDC Advisory forecast said Bunnings, as well as Woolworths and Mitre 10, were intensifying competition and warned smaller businesses wouldn’t be able to keep up. 

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, previously told Daily Mail Australia: ‘When Bunnings comes to town, it’s bad news for local businesses.’

Reacting to the news of Mitre 10’s closure in Byron Bay, Richard Gibson, manager at the store, described its closure as ‘the price of progress’.

There is a Bunnings Warehouse less than a 10 minute drive away and customers said the Mitre 10 store’s closure was inevitable

The store opened in 1991 and has been privately owned by James Mitchell and Lisa Mitchell since 2001.

Mr Gibson wrote: ‘The price of progress, have really enjoyed being part of the crew. To our customers who have been Byronites all their lives, to the newest arrivals and those just passing through. What an amazing crowd. You will be missed. Thank you all.’

The news triggered dismay on social media, with loyal supporters sharing their shock.

Though the owners are yet to comment, there is a Bunnings Warehouse less than a 10 minute drive away and customers said the Mitre 10 store’s closure was inevitable. 

A customer responded: ‘Honestly. I actually thought it had been there longer. Well, 22 years is a lifetime to some.

‘I just thought it would always be there but I guess with a Bunnings nearby it was bound to happen.’

Another said: ‘Apart from Bunnings sale items, Mitre 10 was always cheaper. Very disappointed to see them go.’

One added: ‘So sorry to hear. We always go there instead of Bunnings. You will be missed.’

Mitre 10 told customers that it was having a ‘liquidation sale’ and that ‘everything must go’

Its closure makes it the latest victim of big box business – after a previous report predicted that more than 6000 independent retailers are set to close by 2024

Richard Gibson, manager at the store, described its closure as ‘the price of progress’.

Several customers took to Facebook to reveal their sadness at the closure of the store

The store is now set to be replaced by a branch of Harris Farm Markets. 

Daily Mail Australia has contacted Mitre 10 for comment. Harris Farm has also been contacted for comment. 

Deb Thompson, Bunnings Area Manager, said: ‘We’ve been privileged to be a part of the Byron Bay community for around eight years. The connection the store has with the community is really important to us – whether it’s helping raise funds for important local causes through our famous sausage sizzle, donating essential supplies following natural disasters or supporting local organisations’ special projects.

‘Our teams live and work in the communities we operate, and we always strive to provide ongoing employment opportunities in local areas.

‘We’ve opened stores in many regions across Australia and New Zealand, and believe there’s ample room for both larger retailers and speciality providers in all the markets we operate in. Retailers constantly need to adapt to ensure their offering is appealing to the local communities they serve.

‘There are a number of successful smaller businesses located close to our stores that continue to thrive almost everywhere we operate, including businesses in the home, lifestyle and DIY space.’

On its website, Mitre 10 describes itself as ‘proudly independent’.

‘We’re family owned and operated in a local historical building, cementing our commitment to the community we’ve been part of for more than 40 years.

Last week, Bunnings announced it will expand its pet merchandise range from a few hundred items, including dog beds and kennels, to 1,000 products 

‘We take pride in supporting local our community and customers by assisting schools, sporting associations and other charitable groups in the Byron Bay area.’

The news comes amid growing fear at the spread of Bunnings and other so-called big box stores. 

Last week, Bunnings announced it 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 even for the $3.50 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.

Consumer experts have also warned that the expansion of big box stores could spell trouble for small retailers.  

Bunnings boss Mike Schneider (pictured) said the new direction is in line with ballooning pet ownership over the last three years

Professor Terry added: ‘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 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.’