The Wesfarmers Ltd (ASX: WES) share price is up close to 1% following the impending departure of the boss of Kmart.
Wesfarmers is the business behind a number of leading retailers including Bunnings, Kmart, Officeworks, Target and Priceline.
Wesfarmers loses Kmart boss
The ASX retailer announced that Ian Bailey, the Managing Director of Kmart Group, has advised that he’s going to retire from the position in April 2025.
However, after he leaves that position, he will remain with Kmart Group to “support a smooth transition and serve as Chair of Anko Global.”
Kmart Group’s current chief financial officer (CFO), Aleksandra Spaseska, will become the new CEO. Before her current role, Spaseska held different senior divisional and corporate executive positions with Wesfarmers.
Wesfarmers Managing Director Rob Scott thanked Bailey for his contribution to Wesfarmers over the years:
Ian has played an instrumental role in Kmart Group, driving the transformation of Kmart, including the development of the unique sourcing model which has underpinned its success and created significant value for Wesfarmers’ shareholders.
He has been a pivotal figure in Kmart’s growth, creating a world-class product development company and trusted brand. In recent years, Ian has led important strategic moves to take Anko into new markets and simplify and strengthen Target.
Ian leaves Kmart Group in excellent shape, and he has the gratitude and best wishes of the Wesfarmers Board, Leadership Team and the broader Group.
New leader has experience
The Wesfarmers boss Rob Scott believes that Aleksandra Spaseska is the right person for the job and can create long-term returns for shareholders. Scott said:
I’m delighted to announce Aleks’ appointment as incoming Managing Director of Kmart Group. Aleks brings deep knowledge of the Kmart and Target businesses together with strong commercial acumen.
Working with Ian, Aleks has played an important role in key strategic initiatives within Kmart Group, including the restructuring of Target and transformation activities in data and digital, global sourcing and supply chain.
Aleks’ appointment highlights Wesfarmers’ strong talent development and succession planning processes.
She has been appointed as the deputy Managing Director of Kmart Group as of today, and will commence as Managing Director on 1 April 2025.
Final thoughts on the Wesfarmers share price
Kmart Group is an increasingly important contributor to Wesfarmers, its twin offering of price and improved quality is helping it win over customers in this period of an elevated cost of living.
The question is, will Kmart Group continue to perform as strongly? With someone promoted from among the top ranks of Kmart, I think there’s a good chance it can, particularly with Bailey sticking around to help Anko’s global expansion.
I think Wesfarmers is a great business and I wish it were in my portfolio, but at this price I wouldn’t call it a great buy today. There are other ASX growth shares I’d rather buy which could grow revenue/earnings faster in the next few years.
