Bunnings’ $70 million store move sparks ‘neighbours war’ between warring councils

Bunnings’ plan to shift a store just 10 kilometres has set off a full‑blown neighbours’ war, with council against council, traders against planners and housing advocates against the hardware giant.

The $70 million move would see the retailer leave Bunbury in Western Australia’s South West and rebuild an 18,000‑square‑metre “big green shed” in Dalyellup, in the neighbouring Shire of Capel, south of Perth.

The move and expansion would create around 60 new jobs, Bunnings claims.

However, about 100 residents packed a community meeting this week, and the City of Bunbury has since voted to lodge a formal objection.

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Eddy Gobby, who runs a suspension workshop near the current Bunnings site, fears the departure will sap trade from surrounding operators.

“Don’t you think they have sort of corporate responsibility?” he said.

Bunnings’ plan to close its Bunbury store and shift 10 kilometres down the road to Dalyellup has sparked a fierce local backlash over housing supply and the future of the CBD.

At the heart of the dispute is the Dalyellup block Bunnings wants to occupy.

It’s zoned Urban Development – which allows a mix of uses – but under the shire’s structure plan the land has been set aside for residential.

Federal Liberal MP Ben Small wants WA planning authorities to knock back the application, arguing the South West can’t afford to lose housing lots.

“The number one issue for the South West is the lack of sufficient housing,” he told the ABC. “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.”

Bunnings new location is only 10km down the road.

The vacant site, southwest of the Bussell Highway roundabout, where the Bunnings may be built. Source: Nearmap

Capel council officers, however, have noted the site’s proximity to a recently built major highway connection may make it less suitable for homes than first envisaged.

Ultimately, the WA Planning Commission will make the final call on how the land can be used.

Meanwhile, the City of Bunbury has formally objected the development.

The pushback comes as the CBD pursues revitalisation, with traders worried moving Bunnings further from the centre will mean fewer visits to the city’s core and broader knock‑on effects.

But Bunnings’ director of property, Garry James, said the retailer was progressing through the planning approvals process.

A spokesperson for the Planning Minister said the WAPC would consider submissions from the community and the City of Bunbury before deciding.

An artist impression of the new Bunnings store, south of Bunbury. Source: Shire of Capel

Retail expert Gary Mortimer from Queensland University of Technology said while the emotions were understandable, Bunnings didn’t have an obligation to remain in its current location.

He told the ABC that big‑box retailers frequently faced criticism when they arrived in a precinct, rather than when they 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.”