How the relocation of a Bunnings store ignited a furore in this town

Why Bunnings's plan to move 10km from Bunbury has become a 'red hot' political issue Wed 10 Jun 2026 at 4:18pm In short: Bunnings's plan to relocate its Bunbury store has sparked fierce opposition from businesses, politicians and residents. Critics argue the move could hurt nearby retailers and take up land otherwise earmarked for housing during a housing shortage. What's next? The hardware giant says the $70 million development will create jobs. Planning authorities are yet to make a decision. A public outcry has erupted over Bunnings's decision to shut up shop in Western Australia's second-largest city and move down the road to a neighbouring shire. The hardware giant plans to vacate its site at a retail centre in Bunbury, south of Perth, and shift to Dalyellup, 10 kilometres away in the neighbouring Shire of Capel. The $70 million move has prompted bitter objections from the city's business community, mayor, and both federal and state politicians. Eddy Gobby, who owns a suspension workshop close to the Bunnings site near Bunbury's CBD, is concerned the hardware giant's departure will hurt surrounding businesses. "Don't you think they have sort of corporate responsibility?"he said. Questions have been raised about the suitability of the proposed new site, which is zoned for urban development, and whether it takes away residential land. 'Red hot' local outcry About 100 people attended a community meeting about the move this week and the City of Bunbury subsequently voted to lodge a formal objection to the move. Federal Liberal MP Ben Small is demanding WA planning authorities refuse the development application on the grounds that the land should be used for housing. "The number one issue for the South West is the lack of sufficient housing," he said. "This is a red hot issue, because people can see 300 lots ready to go for housing being displaced by a commercial enterprise that is seeking to move." The land is zoned urban development, which allows for a mix of uses, and under the shire's structure plan has been set aside for residential use. But Capel council officers said the land may no longer be appropriate for residential use, given its proximity to a recently built major main road and the need for noise mitigation. The WA Planning Commmission (WAPC) will make the final decision about permitted use of the land. The ABC has confirmed WA Labor MP Don Punch, who has also lodged concerns with state planning authorities. Bunnings director of property Garry James said the new 18,000-square-metre store would create about 60 new jobs. "We are currently progressing through the planning approvals process," he said. A spokesperson for the planning minister said the WAPC would consider feedback from the community and the City of Bunbury before making a decision. The furore comes also comes as the Bunbury CBD continues efforts for revitalisation, with businesses concerned moving Bunnings further away from the city centre will have knock-on effects. Business and politics Mr Small has former business ties to Bunnings's commercial landlord, Michael Prosser. Mr Prosser's family have grown a property empire in Bunbury, known as Citygate Properties, which owns the Homemakers Centre where Bunnings is located. As an individual, Mr Prosser also previously held joint ownership of a local bar with Mr Small. Mr Small said his views on the matter were completely independent of his past commercial and personal relationship with Mr Prosser. "I have no skin in the game in this decision, from a commercial sense,"he said. "I pride myself on independent decision making." The ABC has reached out to Citygate Properties and Mr Prosser for comment but is yet to receive a response. Loading...A commercial decision Queensland University of Technology retail researcher Gary Mortimer said he did not believe Bunnings had an obligation to stay where it was. He noted that Bunnings, like other big box retailers, often faced criticism when it moved into an area, not when it left. "It's almost like they're damned if they do and they're damned if they don't,"he said. "I don't think the same standard exists for any other retailer, bedding retailer or furniture retailer or rugs retailer." The Shire of Capel is set to vote whether to endorse the development plan tonight. Shire President John Fergusson previously said it was ultimately a commercial decision for Bunnings and state planning authorities.