Bunnings will close its Wollongong store in January as the lease comes to an end next year.
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Staff at the store were told the news this morning and will be retained and redeployed at surrounding stores.
Bunnings Regional Operations Manager Robyn Hudson said the company's outlets in Bellambi and Kembla Grange offered customers a newer and expanded site.
"Because our lease expiry was nearing, and because North Wollongong is one of the older stores in our network, we've made the decision to close and service the local community from the nearby stores instead, rather than commit to a further lease term," she said.
The store's last day of trade will be January 26, 2023 ahead of the lease expiring in March.
Bunnings opened on the present site in 1997 and the North Wollongong store is one of the oldest Bunnings in NSW.
"As our store portfolio evolves and new investments are made, we continually review our network and our needs in the local areas in which we operate. And while many of our stores play an important role for a long period of time, we continually reassess operations based on lease arrangements and store location," Ms Hudson said.
The news will come as a blow for the many community organisations that utilise the Bunnings sausage sizzle for fundraising.
Mark Dandridge, president of the Figtree Lions Club said the club was regularly manning the barbecue and had been for the past decades.
"It will be a loss of a significant amount of charity income for us," he said.
On a good day, the club could raise over $1000 to fund initiatives such as support for children with cancer and services for people with disability.
The Gipps Street site is owned by Perth-based company BWP Trust, which owns a number of Bunnings sites around Australia and is itself part owned by Bunnings' parent company Wesfarmers.
The Wollongong location, which covers 27,320 square metres, delivers an annual rent of $1,501,165 to BWP Trust and is currently valued at $26,100,000, according to BWP Trust's 2022 annual report.
Michael Wedgwood, managing director of BWP Management - the company that manages the properties on behalf of BWP Trust said the business would assess what is next for the site.
"We will undertake a detailed assessment of all potential uses to determine the best alternative for the site."
The property was originally purchased in 2003 for $12 million from BBC Hardware Limited which developed the site.
In addition to its Bunnings properties, BWP Trust also leases land to large format retailers and government agencies.
Bunnings thanked the staff at the North Wollongong store and said their work would be recognised in the coming months.
Mr Dandrige said his club would look at setting up in Bellambi or Kembla Grange.
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