Why is Wesfarmers (ASX:WES) pivoting to an aggressive artificial intelligence roll-out?

Wesfarmers is deploying agentic and generative AI to combat a severe Australian retail downturn and boost productivity. Rather than chasing tech trends, management is using these tools to eliminate operational pain points and free up store teams to focus on customer service.

How is Wesfarmers (ASX:WES) changing its retail product strategy to fight the consumer slowdown?

The conglomerate is expanding its addressable market by moving into new categories across its core brands. Bunnings is branching into automotive, smart home, and commercial ranges to capture broader trade and DIY demand.

Is the Wesfarmers (ASX:WES) e-commerce division profitable now?

Yes, the online marketplaces for Bunnings and Kmart have rebounded into profitability following the closure of the loss-making Catch marketplace. Wesfarmers has shifted to an integrated marketplace model, adding over 400,000 new stock-keeping units across the two platforms.

What percentage of sales do online marketplaces represent for Bunnings and Kmart?

Marketplace expansion is already seeing high digital adoption among Australian consumers. Approximately one in four online transactions at Bunnings now includes a marketplace item.

What are the main bull and bear points for Wesfarmers (ASX:WES) after this update?

The bull case relies on successful AI integration driving down labor costs, alongside strong digital adoption and diversification via lithium and healthcare. The bear case centers on a prolonged Australian consumer downturn, potential community pushback over rapid AI deployment, and the execution risk of launching new retail categories like K Home.

Does this strategy change how defensive or cyclical Wesfarmers (ASX:WES) looks to investors?

Wesfarmers is trying to make its highly cyclical retail business behave more defensively. By using AI to lower structural costs and expanding into less cyclical sectors like Priceline Pharmacy and lithium processing, the company aims to insulate its earnings from swinging consumer sentiment.

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Wesfarmers bets on AI to defy retail downturn

Written by Isaac FrancisPublished Jun 10, 2026, 3:14 AM

Wesfarmers (ASX:WES) is banking on an aggressive artificial intelligence roll-out to defy a severe consumer downturn and deliver superior shareholder returns, CEO Rob Scott revealed.

Scott declared the WA-based conglomerate uniquely positioned to weather economic volatility.

Instead of chasing technology for its own sake, Wesfarmers is deploying agentic and generative AI specifically to eliminate operational pain points, boost productivity, and free up store teams to focus on customer service.

To expand its market share, Bunnings is branching into automotive and smart home ranges, while Kmart is targeting the rising "kidult" gaming market and launching its standalone K Home brand.

Wesfarmers has turned its digital fortunes around after shuttering the loss-making Catch marketplace.

The individual online marketplaces for Bunnings and Kmart have rebounded into profitability, adding over 400,000 new stock-keeping units.

The digital expansion is already yielding results: marketplace items now feature in one in four Bunnings online transactions and one in six Kmart group sales.

While acknowledging community concerns over rapid tech adoption, Scott emphasised that AI integration aligns with Wesfarmers' core operating model.

Coupled with long-term growth pipelines in Priceline Pharmacy and the Covalent Lithium joint venture, the group remains confident it can outpace broader retail headwinds over the next five years.

Wesfarmers bets on AI to defy retail downturn

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