Source: Kapitales ResearchHighlights: 

• Bunnings expands addressable market to AU$113.5 billion.
• AI adoption drives productivity, personalisation, and conversion.
• Covalent Lithium to produce ~190,000 tonnes of spodumene concentrate in FY27.

SnapshotWesfarmers Limited (ASX: WES) is trading at AU$81.24, up 1.56%, following its 2026 Strategy Briefing Day. The company detailed plans leveraging AI, digital transformation, and strategic market expansion across retail, health, and industrial segments.Bunnings: Expanding Reach and Market ShareBunnings is central to Wesfarmers’ growth strategy, with a target to expand its addressable market to AU$113.5 billion. Key initiatives include:

• Expansion of product ranges and new categories for consumers and commercial clients.
• Strengthened omnichannel capabilities, with 1,900 stores and 35+ distribution and fulfilment centres.
• Commercial offerings targeting SMEs, underpinned by loyalty programs like OnePass and Flybuys.
• Operational efficiency delivering a 70.8% return on capital in 1H26, while sustaining resilience across economic cycles.

These actions position Bunnings to capture incremental sales and build long-term customer loyalty, leveraging both physical stores and digital channels.AI and Digital Transformation Across DivisionsWesfarmers is integrating AI to enhance operational productivity and customer experience across its businesses. Bunnings’ Buddy platform enables guided shopping, increasing basket sizes and conversion. In WesCEF, AI supports predictive maintenance and plant optimisation for lithium, ammonium nitrate, and sodium cyanide production. Kmart and Officeworks are using AI to scale agentic commerce, optimise merchandising, and deliver personalised digital engagement, driving stronger online sales and customer lifetime value.Lithium and Industrial GrowthWesCEF’s Covalent Lithium project achieved nameplate spodumene production in FY26, with 2H earnings expected to surpass 1H due to higher pricing and efficiency gains. FY27 spodumene production is projected at ~190,000 tonnes, supporting both refinery feedstock and market sales. Expansion plans include doubling concentrate capacity to ~760ktpa, deploying ore-sorting technology, and maintaining low emissions intensity. Additional capacity expansions in sodium cyanide (~130ktpa) and ammonium nitrate (~865ktpa) enhance Wesfarmers’ critical mineral footprint.Retail and Health DiversificationKmart is scaling Plan C+ stores, agentic commerce, and third-party marketplaces. Officeworks is enhancing B2B, education, and tech solutions. Wesfarmers Health, including Priceline Pharmacy and atomica, is expanding through new store formats, loyalty programs, and digital integration.Strategic OutlookWesfarmers combines a diversified retail and industrial portfolio with a strong balance sheet and disciplined capital allocation. Investments in AI, digital platforms, and loyalty programs are expected to boost margins and productivity. Expansion in Bunnings, lithium, and health sectors positions the company for sustainable growth across economic cycles while offering upside from emerging high-growth segmentsNote- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise. 

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