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Why Bunnings' 10km move from Bunbury has sparked political fire

Wednesday, June 10, 2026 | 1:59 AM (GMT-04.00) Last Updated 2026-06-10T10:45:35Z
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Community Backlash Over Bunnings' Relocation Plans

A growing public backlash has emerged in response to Bunnings’ decision to close its store in Bunbury, Western Australia, and relocate to Dalyellup, a neighboring area. The move, which involves relocating the hardware giant from a retail center in Bunbury to a site 10 kilometers away, has sparked significant concern among local businesses, politicians, and residents.

The proposed $70 million relocation has drawn strong opposition from various quarters, including the city’s business community, the mayor, and both federal and state politicians. Eddy Gobby, who owns a suspension workshop near the Bunnings site in Bunbury's central business district, expressed worry that the hardware chain’s departure could negatively impact surrounding businesses.

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

Concerns About the New Site

There are also questions about the suitability of the new location, which is currently zoned for urban development. Critics argue that the site may be taking away valuable residential land. A community meeting this week saw around 100 people attend, and the City of Bunbury subsequently voted to formally object to the relocation.

Federal Liberal MP Ben Small has called on WA planning authorities to reject the development application, stating that the land should be used for housing instead. “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 in question is zoned for urban development, which allows for a mix of uses. However, under the Shire of Capel’s structure plan, it was originally set aside for residential use. The Shire of Capel council officers, however, claim the land may no longer be suitable for residential purposes due to its proximity to a newly constructed major highway connection.

The final decision on the land’s use will be made by the WA Planning Commission (WAPC). WA Labor MP Don Punch has also raised concerns with state planning authorities, according to the ABC.

Job Creation and Planning Process

Bunnings’ director of property, Garry James, stated that the new 18,000-square-metre store would create approximately 60 new jobs. “We are currently progressing through the planning approvals process,” he said.

A spokesperson for the planning minister confirmed that the WAPC will consider feedback from the community and the City of Bunbury before making a decision.

The controversy comes as the Bunbury CBD continues its efforts to revitalise the area. Local businesses are worried that moving Bunnings further away from the city centre could have knock-on effects on the local economy.

Business and Political Ties

Ben Small, the federal MP, has former business ties to Bunnings’ commercial landlord, Michael Prosser. Prosser’s family has built a property empire in Bunbury known as Citygate Properties, which owns the Homemakers Centre where Bunnings is located. As an individual, Prosser also previously held joint ownership of a local bar with Small.

Small insisted that his views on the matter were independent of any past commercial or personal relationship with 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 Prosser for comment but has not yet received a response.

Retail Industry Perspective

Queensland University of Technology retail researcher Gary Mortimer suggested that Bunnings does not have an obligation to stay where it was. He noted that big box retailers like Bunnings often face criticism when they move into an area, but not when they leave.

“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 tonight on whether to endorse the development plan. Shire President John Fergusson previously stated that it was ultimately a commercial decision for Bunnings and state planning authorities.

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