Wesfarmers reports moderating sales growth at Bunnings
Key points
- Wesfarmers reported that sales growth at its Bunnings hardware division moderated during the first three months of the 2027 financial year.
- Following the operational update, the Wesfarmers share price traded down 1.24% at $74.87.
- Management noted that elevated inflation and higher interest rates are impacting household budgets and overall consumer demand.
Wesfarmers (ASX:WES) reported that sales growth at its Bunnings hardware division moderated during the first three months of the 2027 financial year due to lower sales across seasonal categories and the commercial segment.
The deceleration followed a stronger start to the period, though external market analysts estimate that overall sales growth slowed by approximately 1% across September and October.
“Elevated inflation and higher interest rates continue to impact demand in parts of the Australian economy and are placing pressure on household and business budgets,” said Wesfarmers Managing Director Rob Scott.
The company stated that broader retail divisions performed more steadily, with Kmart Group sales growth remaining broadly in line with the second half of the 2026 financial year alongside stable results at Officeworks.
Wesfarmers intends to monitor economic conditions closely as retail demand shifts through the remainder of the financial year.
Following the announcement, the Wesfarmers share price was down at $74.87.
Wesfarmers operates a diversified Australian business portfolio spanning home improvement, general merchandise, office supplies, chemicals, energy, fertilisers, and health.
The conglomerate regularly evaluates its operational performance across retail brands like Bunnings and Kmart to adjust inventory strategies and manage retail cost bases through changing economic cycles.
