Thinking of Buying a Bathroom Supplies Business in Australia? Here Are 3 Vital Questions to Ask
The Australian hardware and building supplies retail sector, which includes bathroom products, generated $31.3 billion in revenue in 2025–26, employing over 78,800 people across 6,183 enterprises. Profit margins averaged 9.6%, with industry profits totalling $3.0 billion.
Revenue is forecast to grow modestly at 0.8% annually through 2030–31, reaching $32.5 billion. Growth is being driven by improved consumer sentiment, DIY renovation demand, and falling interest rates, though competition from Bunnings, Mitre 10, and online platforms continues to place pressure on smaller operators.
1. Is the Business Positioned for Resilient Demand in Renovations and DIY?
Why It Matters
Bathroom renovations are one of the highest-value segments in the DIY and trade markets. Shifts in discretionary income, consumer sentiment, and housing market activity directly influence demand for bathroom fittings and supplies. Businesses aligned with DIY and home renovation trends are better positioned to capture revenue growth.
What to Check
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Revenue mix – Determine whether sales rely heavily on DIY homeowners, tradespeople, or wholesale clients.
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Exposure to housing cycles – Assess reliance on new builds versus renovations, as renovation activity tends to be more stable during downturns.
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Consumer demographics – Review whether the business caters mainly to cost-conscious buyers or premium renovators seeking high-end bathroom designs.
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Brand presence – Check if the store has exclusive supply agreements or access to trending bathroom product lines.
2. Can the Business Compete with Big-Box Retailers and Online Stores?
Why It Matters
Large chains like Bunnings and Mitre 10 dominate the market with economies of scale, bulk buying power, and aggressive pricing. Smaller bathroom suppliers often survive by specialising in premium ranges, design advice, or personalised customer service. Competing effectively requires differentiation.
What to Check
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Competitive positioning – Confirm whether the business offers niche or exclusive bathroom fittings not easily found at major chains.
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Customer experience – Assess the quality of in-store service, including design consultation and installation guidance.
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Digital readiness – Review the strength of online platforms, ecommerce capabilities, and delivery options.
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Buying group membership – Check if the business benefits from collective procurement groups to lower supplier costs.
3. Is the Business Adaptable to Sustainability and Digital Retail Trends?
Why It Matters
Consumer demand is shifting towards eco-friendly, water-saving bathroom products and online retail convenience. Digital innovation and sustainability practices are no longer optional—they are essential to attract modern homeowners and trades.
What to Check
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Sustainability focus – Review whether the business stocks water-efficient fixtures, eco-certified products, or sustainable building materials.
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Omnichannel strategy – Assess integration of online ordering, click-and-collect, and flexible delivery services.
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Technology investment – Look for adoption of digital tools such as 3D bathroom design software or AI-powered inventory management.
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Future readiness – Ensure the business can respond quickly to evolving design trends and consumer preferences.
Ready to Invest in a Thriving Bathroom Supplies Business?
With stable renovation demand, resilient DIY spending, and opportunities in sustainability and digital innovation, bathroom supplies businesses remain attractive investments.
Long-term success will rely on competitive differentiation, digital integration, and alignment with eco-conscious consumer expectations.
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