Morgan Stanley expects hardware chain Bunnings sales growth to halve (Domain photo)
The popular weekend pilgrimage to hardware chain Bunnings and a grilled sausage could soon lose momentum, according to Domain. Analysts at Morgan Stanley (Morgan Stanley), a financial institution, forecast that sales growth at the Bunnings hardware chain could be halved this year, as a result of the cooling of the Australian housing market.
Stock analysts at Morgan Stanley said household cash flow pressures were mounting, consumers were becoming more cautious, and renovation activity in Australia`s state and territorial capital cities would fall, no longer a boisterous scenario at the height of the housing boom.
(Wesfarmers) will report semi-annual results on February 21. Although the group owns well-known retail brands such as Coles supermarket, Kmart department store and Target department store, the market may focus on the performance of the Bunnings hardware chain. Because of its remarkable attachment to the "deteriorating conditions of the housing market."
Morgan Stanley analysts Kelas (Thomas Kierath) and Rooney (Monique Rooney) wrote in a note to clients: "the Australian housing market is cooling, especially in the new state market, where macro-market indicators show that prices will continue to fall in 2018. In addition, higher interest rates and stricter lending standards for banks will increase the risk of unintended consequences, including increased household cash flow pressures, slowing economic growth, rising losses in the non-property sector and falling house prices.
Morgan Stanley, which believes the Bunnings hardware chain will be affected by market conditions, expects its Australian-New Zealand business to grow 5 percent in the second quarter of fiscal 2018, down from 10.8 percent in the first quarter.
(Charles Schwab Australia) disagrees with this. LeBron (Ben Le Brun), an analyst, believes that the Bunnings hardware chain is still a "cash cow", although discussions on the cooling of the housing market in the market have been going on for some time. However, there is no obvious impact on the sales of the Bunnings hardware chain. He also said he would be surprised if Morgan Stanley`s forecast came true.
