Hardware chain Bunnings Warehouse announced on Friday that it would create 6,000 jobs in Australia over the next three years as part of its $1.5-billion expansion plan. That would involve the setting up of 85 new stores across the country which would also create more than 11,500 construction jobs.

Bunnings is owned by Wesfarmers which also operates Coles. Bunnings Managing Director John Gillam said that by expanding its network, the retailer would be able to serve more communities.

Competitor Woolworths has opened the Masters hardware brand which is a direct rival of Bunnings. Masters recently opened eight stores and plans to open 12 more outlets before August 2012.

In turn, Bunnings will open its 200소 store in Greenace on Friday at Sydney's southwest, 18 years after the retailer opened its first outlet in Sunshine, Melbourne.

Despite the intense rivalry between the two hardware retailers, an analyst said there is enough room for expansion between Masters and Woolworths.

"When Masters go for national pricing next year, they will definitely go very hard on Bunnings' margins, which is why they really need to expand now," The Herald Sun quoted the analyst.

The analyst added that the hardware sector in Australia is worth $35 billion upwards and Bunnings accounts for only 20 per cent of the market share based on its $7.2-billion sales.