Wesfarmers Says Bunnings Sales Growth Moderating, Other Retail Brands Steady

By David Winning

SYDNEY--Australian conglomerate Wesfarmers said sales growth at its Bunnings DIY chain has eased in recent weeks, but momentum at its Kmart and Officeworks divisions remain broadly in line with what it achieved in the second half of the 2026 fiscal year.

Wesfarmers said that Bunnings had started the first quarter strongly, but lower sales across seasonal categories and the commercial segment have subsequently weighed on its performance.

Retailers such as Wesfarmers are battling to maintain or grow sales against a backdrop of elevated interest rates and intensifying cost-of-living pressures, including for fuel. The Reserve Bank of Australia has raised interest rates four times this year to the highest level since 2011, and many economists expect an additional increase next month.

Wesfarmers has argued that its retail businesses are focused more on value than competitors with premium brands, which can help to insulate it from economic headwinds and potentially benefit if shoppers trade down in search of lower prices.

"They remain focused on providing customers with even better value, service and convenience as we approach the important Black Friday and Christmas trading periods," Chief Executive Rob Scott said on Thursday.

Kmart and Officeworks's sales growth since the start of July was broadly in line the second half of fiscal 2026, Wesfarmers said.

"The transformation program remains on track for completion by the end of calendar year 2027 and the benefits of a structurally lower cost base are expected to support an improvement in earnings this year," Scott said of Officeworks.

Away from main street, Wesfarmers said a strong operating performance by its WesCEF resources unit is helping to offset some of the moderation in retail demand.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

October 28, 2026 17:37 ET (21:37 GMT)