Wesfarmers (WES) Status Update summary

Strategic growth and business model evolution

• Sustained sales and earnings growth achieved over the last decade, with a focus on long-term value creation and resilience across economic cycles.

• Expansion and innovation in product range, digital channels, and store formats have broadened the addressable market to AUD 110 billion across Australia and New Zealand, with ongoing expansion into categories such as automotive, pets, energy, and renewables.

• Space optimization and productivity improvements have driven sales and earnings ahead of physical space growth, with a 99% sales increase versus 27% space growth from FY15 to FY24.

• Investments in technology, data, and digital capabilities have enabled personalized customer experiences and omnichannel engagement, with digitally enabled sales now exceeding AUD 1 billion annually.

• ESG commitments include sourcing 100% renewable electricity and progressing toward net zero scope 1 and 2 emissions by 2030.

Category and product expansion

• Significant category expansions in pets, cleaning, automotive, smart home, kitchens, plumbing, and electrical, with strong sales growth and customer engagement.

• New offers in EV charging and household renewables support customers' energy transition and reduce household bills.

• Core categories like tools and paint have been reinvigorated through space optimization and new formats, leading to higher sales density and productivity.

• Marketplace and own brands portfolio have grown rapidly, now with over 140,000 SKUs, driving digital channel growth and exclusive product innovation.

• Service offers and owned brands complement leading brands, enhancing value and project completion for both DIY and commercial customers.

Commercial and network growth

• Commercial sales now represent 38% of total sales, with ambitions to reach a 50/50 split between commercial and consumer, focusing on the 'Whole of Build' strategy and specialist formats like Frame & Truss, Tool Kit Depot, and Beaumont Tiles.

• Growth strategies include expanding product range, enhancing service models, and investing in specialist formats.

• Network expansion continues with over 100 property projects in the pipeline, focusing on new, replacement, and upgraded stores, with targeted space growth of 1%-2% per annum.

• Localisation and curation of ranges in smaller format stores drive sales uplift and operational efficiency.

• Supply chain enhancements aim to consolidate deliveries, improve in-stock availability, and support growing online and commercial demand.