The Australian hardware store Bunnings Warehouse has removed their iconic slogan that promises ‘lowest prices’.
The brand has slowly stripped warehouses, TV and radio ads and staff uniforms of the slogan: “Lowest prices are just the beginning” that has been around for 25 years.
The hardware giant claims that the removal of the slogan will not affect prices for customers, but retail experts suggest that online shopping has put the store under pressure.
The slogan disappears when the retail sector of Australia has ended up in a crisis.
Bunnings Warehouse has removed the slogan ‘Lowest prices are just the beginning’
Bunnings director Mike Schneider said that removing the slogan was a way to “renew” and “upgrade” the store brand.
“After 25 years, customers understand our lowest pricing policy and our price guarantee, so we thought it was time to update and renew our branding,” said Mr. Schneider in a statement to Daily Mail Australia.
He stressed that the guarantee for low prices would not be changed.
“We are incredibly and sincerely committed to our policy of the lowest prices. We invest more than $ 5 million a year in a very robust system to constantly monitor the prices of competitors online and in-store, nationally and regionally, “said Mr. Schneider.
“In stores we have price integrity team members who control the local market.”
Schneider also said that the removal of the slogan was not the result of competing with prices in other department stores and added that it had not disappeared forever.
But Steve Collinge, a retail consultant, said the pressure of online shopping would give Bunnings “headaches.”
“Bunnings knows that consumers will buy more and more online and this will really give them a headache,” he said News.com.au.
The CEO of the store said that removing the slogan would make no difference to shoppers’ prices
‘Bunnings is a great brand, but it is paralyzed by its monster stores that have very high fixed costs. That means that nimbler competitors with a much lower cost base can come up with cheaper prices. “
Professor Gary Mortimer from the University of Queensland Business School said he didn’t think the disappearance of the slogan would have any effect.
“I really don’t think consumers notice the signs are missing,” Professor Mortimer told Daily Mail Australia.
“I think that’s ultimately because that slogan is embedded in the psyches of the consumer. When we think of Bunnings, we think of the slogan ‘Lowest prices are just the beginning’.
Professor Mortimer said he did not believe that shoppers would see a price increase.
“I think that’s just the case, so they’re not in the low prices and are attractive to other important features, such as the quality of the service and the range.”
Since last month, Bunnings has slowly removed the slogan on its staff aprons, warehouses and commercials
The removal of the Bunnings slogan comes during the Australian apocalypse.
Retailers throughout Australia are forced to enter into voluntary administration while shoppers focus on online stores.
Dropping as FLIES: some recent Australian victims in stores
2016: Dick Smith, Masters hardware, Payless Shoes
2017: Topshop Australia
2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David
2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe
2020: Jeans West, Collete Hayman, EB Games, Co-op bookstore
In addition, retailers blame landlords of shopping centers for increasing rent.
In the past year, several major brands collapsed, including fashion retailers Bardot and Jeans West and gaming store EB Games.
Retail Doctor Group, a business consulting firm, said Australia could have fewer traditional stores unless changes were made to prevent the emergence of online trade giants such as Amazon.
“We haven’t even reached base camp with what’s going to change,” Brian Walker from the group told Daily Mail Australia earlier.
“Twenty-five years ago there was a small online bookstore in Seattle that now sells more than $ 250 billion a year.”
Mr. Walker said that shopping center owners increased rents, putting pressure on the market, especially at fashion stores struggling with slower sales.
Retailers paid an average of $ 12,825 a month in rent in the fall of Sydney last month, according to data from real estate group Colliers.
From September last year, the retail sector in Australia grew at the slowest pace since the 1991 recession.
Harris Scarfe, (photo), founded in 1849, surprised the consumer when it came into administration in December and is now about to close at least 21 stores
The news has since worsened as figures from the Australian Bureau of Statistics were released last week, showing that retail sales grew by only 0.3 percent in 2019 – the slowest annual growth rate ever.
Business consulting firm BDO’s national retail leader, Mark Schiavello, said retailers had to adapt to survive.
“Today’s shopper does not go to a store to do transactions, it can be done anywhere, anytime,” he told Daily Mail Australia.
“They go to stores to experience, feel and connect with a brand.”
HOW CAN SHOPPING CENTERS SURVIVE?
Brian Walker, the director of the Retail Doctor Group, said that the Daily Mail Australia shopping centers must quickly adapt to the demands of the modern customer.
This includes offering community activities, expertise and a range of additional offers – making going to a shopping mall an “experience.”
“I think the signs are already there,” he said. ‘That the big retailers will not think so much about retail, but about the brand.
‘Shopping centers try to adapt to this model by offering great shopping and living experiences.
‘They will increasingly think about their brand and how customers will feel attracted to it.
‘The A-Grade centers, the Chadstones of this world, they will flourish. They’ll be all right, and we see that worldwide – the Harrods and so forth, they’ll be all right.
“And we will see a return to the community hubs, and they will have much more interactions with their communities – evening courses, education, much more community focus.
“There will be less attention for product sales, because that goes online. Much more attention will be paid to expertise, knowledge, uniqueness and experience. ”