Bunnings start FY21 off with a bang
Wesfarmers has demonstrated strong growth into the beginning of the new financial year, after it delivered growth across almost all of its stable of retail brands in the year-to-October, according to a recent Inside Retail report.
Bunnings particularly saw a sales growth of 25.2 per cent during this same period, while Officeworks grew 23.4 per cent, according to the report.
Catch Group, which was only purchased in July 2019, delivered gross transactional value growth of 114.4 per cent in the year so far due to the increasing consumer movement online, according to the Inside Retail report.
Despite the good results, the Kmart Group did not fare as well as Wesfarmers’ other businesses, with Target seeing sales fall by 2.2 per cent and Kmart itself delivering sales growth of 3.7 per cent.
Plans are already underway to address the continued underperformance of Target, according to Wesfarmers, with nine large format stores converted to Kmart stores and six Target Country stores converted to K Hub stores during the year to date.
Wesfarmers Managing Director, Rob Scott, said despite the challenging operating environment, the results across the group’s retail businesses reflect their continued focus on meeting the changing needs of customers and delivering greater value, quality and convenience while providing safe and trusted environments for customers to shop.
“The trading restrictions in Melbourne were difficult for team members and customers, and it is encouraging to see progress with the reopening of stores over recent weeks. As a result of significant pent-up demand, the trading performance across stores in Melbourne has been very strong since they re-opened to retail customers,” Mr Scott said.