Wesfarmers Accelerates AI and Omnichannel Growth in 2026 Strategy Update

Wesfarmers Reaffirms Long-Term Shareholder Value Focus

Wesfarmers Limited (ASX:WES) kicked off its 2026 Strategy Briefing Day by highlighting a consistent track record of delivering superior shareholder returns. Since listing in 1984, Wesfarmers has achieved a 19.0% annual total shareholder return (TSR), nearly doubling the broader market’s 10.4%. Even in the past decade and five years, the company outpaced the All Ordinaries Accumulation Index by substantial margins, underscoring resilience across economic cycles.

The company’s strategy centres on anticipating customer needs, fostering team wellbeing, ethical supplier engagement, community support, environmental stewardship, and uncompromising integrity. These pillars set the stage for accelerating growth and productivity through digital transformation and AI adoption.

AI and Digital Tools Drive Omnichannel Expansion

Wesfarmers is rapidly embedding artificial intelligence across its retail ecosystem. Bunnings’ agentic commerce platform, Buddy, powered by Google Gemini, enables guided, end-to-end shopping experiences that boost basket sizes and conversion rates. Similarly, Kmart Group has scaled agentic commerce capabilities and launched a third-party marketplace, while Officeworks is digitising store operations and deploying AI tools to enhance customer and team member experiences.

The group’s extensive omnichannel assets support these initiatives: over 1,900 stores across Australia and New Zealand, 35+ distribution and fulfilment centres, and digital assets reaching approximately 12 million customers. Online sales topped $3.3 billion in the trailing 12 months, with marketplaces adding hundreds of thousands of SKUs and sellers, reflecting a strategic pivot to platform-driven retailing.

Bunnings Leads Growth with Marketplace and Commercial Expansion

Bunnings continues to demonstrate robust growth through expanding its retail footprint and commercial offerings. The network now includes 353 stores with a pipeline of over 100 property projects through FY30. The launch of the Trade Marketplace in Q2 FY26 has amassed over 300,000 SKUs from 600+ sellers, with a New Zealand rollout planned for FY27.

Commercial growth is being accelerated through a relaunched loyalty program and enhanced service channels, leveraging AI for rapid quote generation and improved conversion rates. Bunnings is also deepening its participation in the $3.3 billion home renewable energy market via the Zelora home electrification offer and expanding export relationships in the Pacific Islands.

Lithium Project Achieves Key Milestones Amid Refinery Ramp-Up

Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) reported achieving nameplate spodumene concentrate production in FY26, marking a significant operational milestone. The lithium refinery has begun producing high-quality lithium hydroxide, with engineering solutions underway to address odour issues and enable unconstrained ramp-up targeted for 2H FY27.

The Mt Holland expansion project is progressing toward a Final Investment Decision in 1H FY27, aiming to increase production volumes and lower costs by CY29. WesCEF’s broader portfolio shows operational excellence, with recent capacity expansions in ammonium nitrate and sodium cyanide plants, positioning the division for sustained growth.

Health and Officeworks Undergo Multi-Year Transformations

Wesfarmers Health is capitalising on strong market fundamentals, including an ageing population and rising demand for consumer-led health and beauty products. Priceline Pharmacy is expanding its network and exclusive brands while accelerating omnichannel growth with a new app and loyalty program relaunch. Digital Health and MediAesthetics divisions are also positioned for profitable growth.

Officeworks is executing a multi-year transformation focused on becoming a low-cost operator, resetting merchandise fundamentals, creating inspiring omnichannel experiences, and winning in B2B and education markets. Investments in AI and digital platforms underpin efforts to maintain price leadership, enhance customer lifetime value, and scale new growth platforms including the Target marketplace and agentic commerce.

Financial Discipline and Sustainability Commitments

Wesfarmers maintains a strong balance sheet with a Debt/EBITDA ratio of 1.9x and a weighted average cost of debt at 3.56%, providing flexibility to invest in growth while returning capital to shareholders. Over the past decade, the group has distributed over $42 billion in dividends and capital returns, representing approximately 47% of market capitalisation.

On sustainability, Wesfarmers reported a 27.8% reduction in Scope 1 and 2 emissions, increased rooftop solar capacity by 22.6%, and diverted 73.5% of operational waste from landfill in 1H26. The company is on track for net zero Scope 1 and 2 emissions by 2030, with over half the required abatement already delivered.