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Bunnings and Officeworks post strong double-digit growth

In the latest trading update issued by Wesfarmers, gross transaction value for Catch Group increased 114.4% for the year to 31 October 2020, with Bunnings and Officeworks posting double-digit sales growth of 25.2% and 23.4% respectively.

Total sales growth for Kmart was 3.7% while sales at Target slipped 2.2%. Overall, the group’s retail businesses delivered total online sales growth of 166% excluding Catch. Excluding online sales in metro Melbourne, online sales growth was 98%.

Catch continues to see strong growth in its in-stock and marketplace segments with active customers reaching 2.7 million at the end of October compared to 2.3 million at the end of FY20.

For Bunnings, strong sales growth has continued in both consumer and commercial segments with digital engagement continuing to increase.

Sales growth at Officeworks has been supported by strong demand for technology and home office furniture products with a positive customer response to the retailer’s every-channel offering, reflected in the online sales penetration which reached 30.8% in the year to date (excluding metro Melbourne).

Home, active, and kids were the noteworthy categories for Kmart and Target, partially offset by lower demand for apparel. Digital capabilities continue to expand within the Kmart Group and online penetration reached 7.8% and 13.2% for Kmart and Target respectively for the year to date (excluding metro Melbourne).

Stock availability in some home products impacted Kmart sales growth in July and August but progress has been made to improve availability in recent months, despite long order lead times and recent industrial action at port terminals. Stock weights have been significantly increased ahead of Christmas trade.

Wesfarmers managing director, Rob Scott said that trading performance across the group had been pleasing with the businesses responding well to a period of significant uncertainty and disruption.

“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.”

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