Bunnings and Kmart sales grow as shoppers hunt for lower prices

More Australians are shopping at Bunnings and Kmart despite cost-of-living pressures.

On Thursday, Perth-based industrials and retail conglomerate Wesfarmers announced full-year net profits came in at $2.87bn, down 1.8 per cent compared with last year.

Wesfarmers managing director Rob Scott said the company’s plan to focus on low prices led to more Australians shopping with its brands.

“Bunnings and Kmart Group’s everyday low prices continued to drive sales and earnings growth,” he said.

“Disciplined execution of strategies helped offset cost pressures and delivered operating leverage across both businesses.”

Mr Scott said keeping prices low would be an important part of the business’s strategy going forward, recognising the ongoing inflation impacts on households and businesses.

“While Australian consumer demand remains resilient, cost-of-living pressures continue to affect many households across the economy,” he said.

“Uncertainty regarding the outlook for inflation, house prices, interest rates and tax settings are affecting consumer sentiment, while higher costs of doing business are weighing on business confidence and spending.”

Once again Bunnings did the heavy lifting, with earnings up by 5.1 per cent to $2.455bn.

Kmart Group earnings rose 6 per cent to $1.11bn, while sales grew 2.8 per cent to $11.7bn.

Offsetting an otherwise strong result was Officeworks, with earnings slumping 22.2 per cent to $165m.

Total group revenue rose 3.4 per cent to $47.27bn in the year to June 30, while earnings before interest and tax excluding significant items increased 7.3 per cent to $4.49bn.

Originally published as Bunnings and Kmart sales grow as shoppers hunt for lower prices