Australian hardware retailer Bunnings Warehouse is set to become one of the first retailers in the country to sell through Google AI Mode.
Michael Schneider, Bunnings managing director, said that selling through Google’s service is a decision that has been made for customers as more and more look to buy through AI.
“We know customers are increasingly searching their products directly through generative AI platforms,” Schneider said, speaking at Wesfarmers’ annual strategy day.
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“In the next two weeks, we will be among the first retailers in Australia to launch a shoppable range through Google AI Mode.
“Customers will be able to research products, select recommended items from our catalogue, and complete transactions directly through AI Mode across Google search, Chrome and the Google app.”
Agentic commerce was at the core of the strategy day, with Wesfarmers having announced its backing of AI back in November.
Former Bunnings CIO and OneDigital executive general manager Leah Balter said that changing customer behaviour is driving the AI shift.
“[Consumers are] shifting from traditional search … to LLMs. It’s also changing in terms of how our customers are searching on our websites, so where you might have searched for a hammer, customers are now searching for, say, 20 words on average in terms of the product,” Balter said.
Bunnings has already launched an agentic assistant called “Buddy”, as has Kmart with “Joy”. Wesfarmers said that Officeworks and OnePass will also see agentic commerce rollouts.
Balter said customers are not only buying through AI more, but they are also spending more and have a higher conversion rate.
“Buddy is already delivering strong engagement outcomes, including more than doubling online conversion rates and increasing basket size through projects-based shopping behaviour,” Schneider said.
“Buddy helps our customers take on DIY projects with confidence by bringing expert advice into the home through a more personalised experience across browsing, planning and purchasing online.”
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Daniel Croft
Born in the heart of Western Sydney, Daniel Croft is a passionate journalist with an understanding for and experience writing in the technology space. Having studied at Macquarie University, he joined Momentum Media in 2022, writing across a number of publications including Australian Aviation, Cyber Security Connect and Defence Connect. Outside of writing, Daniel has a keen interest in music, and spends his time playing in bands around Sydney.