The one mistake the hardware warehouse made that’s left it exposed to Chinese-owned Alibaba

Bunnings’ one failing that let Chinese-owned retail giant Alibaba grab a foothold in the market has been revealed by experts. 

Bunnings Warehouse has fallen behind thanks to its lacklustre online presence, retail experts said, which has taken a massive toll on how and if it will be able to survive.

The superstore has some work to do to stave off financial suffering long-term, with online retail on track to make up for 20 per cent of all shopping in the next two years, industry specialists told Daily Mail Australia.

 

Bunnings Warehouse (pictured) has fallen behind in its online presence, experts said, which has taken a massive toll on how and if it will be able to survive future trends

The tradie-haven could suffer for as long as five years thanks to its lack of online presence, which has been intensified by the growing ingenuity of Chinese online retailer Alibaba.

‘Bunnings were slow to get online, they’re just starting to crank that up,’ Roger Simpson from The Retail Solution told Daily Mail Australia.   

‘Bunnings are going to take five years to get online ramped up – sales still being slow.’

Maximising in-store shopper experiences was crucial in ensuring the store kept afloat amid a shift towards often cheaper, more convenient online stores, CEO of Retail Doctor, Brian Walker told Daily Mail Australia.

The tradie-haven could feel the effect of its online store lag for up to five years into the future, intensified by growing ingenuity of Chinese online retailer Alibaba (pictured)

The tradie-haven could feel the effect of its online store lag for up to five years into the future, intensified by growing ingenuity of Chinese online retailer Alibaba (pictured)

‘Bunnings are interesting, they create a demand for their experience, it’s a social experience because of their barbecues (sausage sizzles),’ Mr Walker said.  

He added the store wouldn’t always be able to rely on its infamous ‘sausage sanga’ to bring in traffic, rather its longevity would be reliant on investment in innovation and technology.

‘They need to invest in artificial intelligence, research and development, fulfillment models, and contemplate funding an innovation strategy.’

Mr Walker drew comparisons with the way US retailer Walmart was able to maintain business despite online store Amazon threatening to steal its customer base. 

Mr Walker said Bunnings wouldn't always be able to rely on its infamous 'sausage sanga' (pictured) to bring in traffic

Mr Walker said Bunnings wouldn’t always be able to rely on its infamous ‘sausage sanga’ (pictured) to bring in traffic

‘Walmart was hit hard by Amazon, but they’re trading well and now doing interesting things similar to Amazon, like predictive stuff on their online platforms.’

Robotic assistants might not be too far from appearing in Australian stores either, according to Mr Walker.

A robot has already been utilised in US store Lowe’s for two years, meaning a similar thing could be a reality sooner than most Australians would think. 

Such technological advances make for more efficient, streamlined shopping for consumers, but they also pose a threat to retail industry employees. 

Robotic assistants might not be too far from appearing in Australian stores either - endangering the jobs of Bunnings employees (pictured)

Robotic assistants might not be too far from appearing in Australian stores either – endangering the jobs of Bunnings employees (pictured)

While an introduction of computerised shop attendants would inevitably force businesses to cut jobs, Mr Simpson said losses would occur slowly and gradually.

He also argued growth in online retail, while it put pressure on physical retailers, would not have an immediate macro impact on Australia’s biggest traders.

‘There will be re-employment into other roles, but not a massive amount of businesses will be going out of business,’ he said. 

Mr Simpson predicted there would be a modest amount of physical stores closing due to online shopping, likely resulting in thousands of Australians losing their jobs. 

Daily Mail Australia has contacted Bunnings Warehouse for comment. 

Read more at DailyMail.co.uk