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Home / Business

Bunnings' seismic issues: One store reopens, another remains shut

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
8 Dec, 2020 04:24 AM3 mins to read

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Bunnings Warehouse store at Mt Roskill shut in late November temporarily. Photo / Richard Robinson

Bunnings Warehouse store at Mt Roskill shut in late November temporarily. Photo / Richard Robinson

Bunnings has re-opened a $49.2 million Auckland store which it shut late last month saying it was due to seismic issues, but another store owned by the chain remains shut.

Bunnings Warehouse on Carr Rd, Mt Roskill re-opened on the weekend and a statement from the business said it was only closed for a few days for the car park to be assessed.

"Initial engineering advice raised a concern with the seismic resilience of the car park, however, Bunnings' landlord Investore Property, has now had further, in-depth analysis undertaken and independent engineers have confirmed that the site is legally compliant and safe to re-open," the business said.

Bunnings' NZ director Jacqui Coombes said the store had only been shut temporarily.

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"We would never compromise on the safety of our team and customers and took a very conservative approach when we received some initial advice that raised some questions, making the decision to close the store whilst engineers conducted further assessments.

"It has been confirmed that the car park is compliant with legislation and safe to occupy, however, we would like our sites to be of a higher standard and are working with the landlord on additional strengthening work as part of a planned upgrade and expansion of the store.

"As a further interim precaution, we will be looking to undertake some additional strengthening in the coming days until more permanent works are completed."

The click and collect service is unavailable in the meantime but will return shortly.

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Another Bunnings store has seismic issues.

On November 11, the business said it would temporarily shut its Tokoroa store "after receiving an engineering report that found its seismic resilience did not meet requirements".

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The store was to be closed for an initial two-week period while the retailer worked through the next steps with its landlord.

The Tokoroa store's website said today the store was still shut and it apologised to customers, referring them to Rotorua or Taupō.

Wage subsidy

Meanwhile, a search of the Government's wage subsidy scheme showed Bunnings got $27.2m for 4277 people.

Mitre 10 (New Zealand) got $2.2m for 327 people, Mitre 10 Mega Palmerston North got $673,000 for 103 staff and the Taupō Mitre 10 Mega Partnership got $614,000 for 93 people.

Coombes said: "During the lockdown, our priority was to protect our team from financial hardship whilst our business was effectively closed. We applied for the wage subsidy to contribute to covering the cost of paying our teams over this time. The subsidy was passed on in full to our team of 4500 as was intended and was one of a number of measures we put in place to support our team."

"The subsidy did not cover our wage costs in full while we were closed during the first lockdown period."

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Bunnings said it faced a significant loss of revenue over the five weeks of the lockdown with more than half its stores shut and the remainder open for essential trade sales only.

"During this time we continued to pay our frontline store teams in full, with assistance from the wage subsidy," the company said.

After the initial five-week lockdown, trading restrictions meant Bunnings was only able to offer online orders (Click & Deliver/ Drive & Collect) for a further two weeks.

Its competitor applied for the subsidy on a per-site basis.

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