Wesfarmers Q1 retail sales update

Overnight, Wesfarmers briefed the Australian Stock Exchange on their Q1 sales performance of the Bunnings business in Australia and New Zealand.

Total sales for the quarter were $2,964 million, 11.5 per cent above the prior corresponding period. Total store sales for the quarter increased 11.7 per cent, while store-on-store growth was 10.8 per cent.

Good sales growth was achieved during the period in both consumer and commercial markets, within all trading regions and across all merchandising categories. The results built on total sales growth of 7.4 per cent in the prior corresponding period, which included adverse impacts from wet weather and the stock liquidation activities of the Masters business.

Bunnings Group Managing Director Michael Schneider said the results were pleasing and continued to be supported by a strategic agenda focused on driving growth, creating better experiences for both customers and the community, and strengthening the core of the business.

“Continuing to deliver on this strategic agenda will support ongoing growth for the BANZ business,” Mr Schneider said.

During the quarter, two replacement warehouses were opened at the former Masters sites in Dandenong (Victoria) and Mt Gambier (South Australia). The Compton Road warehouse (Queensland) was closed for redevelopment.

On 12 October 2017, Home Consortium confirmed the completion of its acquisition of 100 per cent of the shares in Hydrox Holdings, satisfying the remaining condition with Bunnings on agreements for lease on six former Masters locations. It is anticipated that these stores will be converted and opened as Bunnings stores by May 2018.

A further 16 sites were under construction at the end of September 2017. 

Source: Insight DIY & Wesfarmers press release.

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