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Summary
- Engineers raised concerns on the seismic resilience of the car park at Bunnings Warehouse, Mt Roskill.
- Bunnings has advised shoppers to visit nearby stores or shop online after closing Mt Roskill store.
November has seen full earthquakes in New Zealand as the country felt ten quakes over 5.0 magnitude and many small quakes of below 5.0 magnitude.
On 27 November 2020, an earthquake with a magnitude of 4.9 was recorded during the early hours in the South Pacific Ocean. The epicentre was around 736 km away from Auckland.
Black Friday cut short at Bunnings Mt Roskill
The shopping bonanza on this Black Friday has been snapped for customers of Bunning Warehouse at Mt Roskill, Auckland.
The Australian household hardware chain received advice from engineers, who raised concerns on the seismic resilience of the car park at the warehouse.
Bunnings said they have opted to close the store as a pre-emptive measure while they engage with landlords and engineers.
Commercial customers would continue to be catered by account managers. It has also asked retail customers to shop at nearby stores or online.
Retail customers are encouraged to shop online or visit stores at Mount Wellington, New Lynn, Grey Lynn, or Manukau, which are the closest stores.
Investore Property Limited (NZX:IPL) owns the property where the store is housed. It had purchased the property for $48.5 million around a year ago. On 27 November, IPL shares last traded at $2.21.
Wesfamers’ cash cow
Bunnings Warehouse chain is owned by Australian conglomerate Wesfarmers Limited. It delivered strong sales and earnings in the year ended 30 June 2020.
The household hardware chain delivered revenue of AU$15 billion for the year, which constituted nearly half of the conglomerate's total revenue of AU$31 billion.
For the year ended 30 June 2020, the earnings before tax were AU$1.82 billion after AASB 16 and AU$1.85 before AASB 16.
Excluding right of use assets, lease liabilities and before AASB 16, Bunnings delivered a return on capital employed of 61.8% compared to 50.5% in the previous year.
