The Wesfarmers Ltd (ASX: WES) share price is in focus as today is the company’s investor day.
Wesfarmers is the company behind businesses like Bunnings, Kmart, Officeworks, Target, Priceline, WesCEF and a number of healthcare and industrial names.
Investor update
The company highlighted that it has a portfolio of high-quality businesses, with a unique mix of growth and resilience. It’s choosing to “accelerate the execution of its growth and productivity agenda”.
It highlighted several key growth projects to show what it’s working on, including expanding addressable markets, leveraging omnichannel capabilities, WesCEF expansion projections, and store network growth and development.
Wesfarmers also noted that it’s digitising its business.
Digitising
Wesfarmers said that it’s expanding the use of RFID (radio frequency identification) and using electronic shelf-edge labelling in Bunnings in select categories to support the lowest prices and productivity.
Next, the company noted demand planning systems in Bunnings, Kmart Group and Officeworks.
Wesfarmers also highlighted its use of data and robotics in WesCEF to optimise safe and reliable plant performance.
The company also noted it’s working on supply chain automation and digitisation to enhance its fulfillment capabilities.
Finally, it’s using data to “improve personalisation and customer experience”.
Growth projects
The company noted that it’s advancing the responsible use of AI to drive long-term sales and earnings growth.
For example, AI chat is helping increase customer traffic and conversion, AI is assisting team productivity, it’s helping merchandising and marketing with sales and margin efficiencies, there’s supply chain optimisation, and it’s improving customer satisfaction for its contact cent.
Let’s turn to the other growth initiatives.
In Bunnings, it’s wanting to grow its retail space (100 property projects to FY30), drive growth with commercial customers, grow in adjacent markets (such as pet care and electrification), accelerate its retail media strategy, and continue growing its core business.
Bunnings also announced that Blackwoods and Workwear will transition into Bunnings Group, while remaining standalone businesses.
Finally, the company highlighted that Bunnings is growing commercial export relationships in the Pacific Islands, such as Fiji.
In Kmart Group, it noted that it continues reducing prices and expanding growth categories. It’s now trading from 16 stores with the new Kmart Plan C+ format, with 40 planned by the end of FY27.
It’s also launching the K Home concept store, which includes all of its range of home products. It appears to be a challenger to IKEA concept.
Additionally, five Anko stores are operating in the Philippines, giving the business more international growth potential. It reported strong sales density performance, with profit being generated. Five more stores are planned by the end of FY27.
Officeworks is working on improving its cost base, offering customers better value. It will continue focusing on business and education customers.
WesCEF believes that that lithium is a significant new growth platform, with a mine and concentrator expansion decision in the first half of FY27, which could double production – construction is targeted for completion in 2029. Its nameplate spodumene production was achieved in FY26.
In healthcare, the division has “strong fundamentals”. There’s an ageing population, more health conscious and digitally literate consumers, and growing demand for health and beauty. It was noted that in FY26, Priceline completed 24 new sites and 23 high-quality refurbishments. The healthcare division is also expanding exclusive brands and private label (such as hair care).
Final thoughts on the Wesfarmers share price
The company is one of the best ASX blue chip shares, in my opinion. I think it has a very promising future and it’s doing the right things to grow its earnings for the long-term.
It’s one of the ASX dividend shares I’d be very happy to own over the long-term.
