If you were to ask someone what they liked most about iconic hardware retailer Bunnings, the perennial sausage sizzle would likely be the first response, followed by the company’s memorable TV ads and jingles.
However, Wesfarmers has not been without its missteps. In 2020, the company announced plans to shut or convert 167 Target stores to Kmarts, amid plunging profits for the chain. It has alsoWesfarmers began in 1914 as a co-operative aimed at assisting farmers in growing and marketing their produce. Over the years, it ran a range of different operations, including a radio station, insurance, wool trading and transport.
“What you would hope in any recovering economy is that there’d be more spending at places like Bunnings as people do more home renovations,” Jamie Hannah, deputy head of investments at Wesfarmers investor Van Eck says. Investors also see significant upside in Wesfarmers’ chemicals and industrials businesses, which are benefitting from higher commodity prices. The company’s new Mt Holland lithium project is also underway and expected to be up and running by 2024, providing a further fillip to the conglomerate due to significant demand for the battery making element.Van Eck deputy head of investments Jamie Hannah.
domp Bunnings is turning hardware into Reject products. Cheap & short term life.