House price weakness casts a cloud over Bunnings glory days: Morgan Stanley

 In Australia, Bunnings, NewZealand
The weekly pilgrimage to Bunnings for a browse and a snag-in-bread may be losing numbers fast, with Morgan Stanley analysts predicting the hardware retailer’s sales growth will halve this year as a result of cooling house prices.
Increasingly cautious consumers and growing pressure on household cashflow are likely to see spending on home improvement fall from the lofty highs seen during the peak of Australia’s capital city property price boom, according to Morgan Stanley stock analysts.
Parent company Wesfarmers, which also owns Coles, Kmart and Target, is set to release its first-half financial results on February 21 but attention could quickly fall to Bunnings due to its particularly high exposure to a “deteriorating housing market”. Domain – Read more…

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