The Wesfarmers Ltd (ASX: WES) share price could get a boost if the latest plan by Bunnings goes well.
Bunnings is the biggest business in the Wesfarmers stable, but it also owns others like Kmart and Officeworks.
Bunnings to sell pet products
Two decades ago, Bunnings introduced kitchens to its warehouse stores.
Now the business is going to start selling more products relating to pet care, including food, toys and bowls, according to reporting by the Australian Financial Review.
It’s going to start selling these items next month and will include 1,000 new items. Bunnings already sells kennels, mats, bedding and pet doors.
Bunnings’ managing director Mike Schneider noted to the AFR that 60% of Australians are pet owners. It’s expanding its offering for shoppers. Schneider said:
Between working from home more and potentially not spending any disposable income on other categories, we see people doing things around the home (DIY).
Over the last few years we still have some really strong performance in the limited range of pet products…so this is just a logical next step.
The hallmark of Bunnings’ success over the years has to do with being very focused on the things where it believes it can add value, and I think convenience, price and range on an assortment are things that are very much at the core of Bunnings.
The larger stores will have two aisles dedicated to pet products, or 40 sqm in floor space terms.
However, the business is unlikely to move into the pet grooming or vet care space like Woolworths Group Ltd (ASX: WOW) has. The products will initially be for cats, dogs and birds, though other animals such as horses could also be included depending on the store location, such as coastal or rural communities.
Final thoughts on the Wesfarmers share price
It’s unlikely to massively move the dial for Bunnings, but it could be helpful for defensive earnings during a possible downturn.
I do think Wesfarmers is one of the best big ASX shares, but I’d be happy to wait for a lower price before investing after its run over the last few months.
