Jefferies sees Bunnings' auto push as a modest start to broader expansion

SUPER RETAIL

15/09/2025 20:32

** Jefferies says conglomerate Wesfarmers WES.AX-owned DIY hardware retailer Bunnings' auto category expansion was modest but signals broader ambitions, with phase two of the expansion imminent

** Brokerage adds that, while unlikely to match retailer Super Retail's SUL.AX full range, Bunnings could gain traction with a narrow set of vehicle-specific categories

** SUL may consider M&A as a defence, but geographic overlap limits options; Peer Bapcor's BAP.AX Burson trade unit is seen as "attractive", though unlikely to be sold - brokerage

** Expansion expected to evolve similarly to Bunnings' pet category rollout via multiple iterations, with retailer's proven track record of expanding its total addressable market by entering into new segments - Jefferies

 ** YTD, WES and SUL are up 30% and 15.5%, respectively, while BAP is down 27% as of last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))