🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Virus-driven lockdown bumps Wesfarmers online sales up 89%

Published 09/06/2020, 09:37 am
Updated 09/06/2020, 09:42 am
© Reuters.
TGT
-
WES
-

(Adds details on YTD trading, background)

June 9 (Reuters) - Australian retail giant Wesfarmers Ltd WES.AX on Tuesday reported an 89% surge in online sales so far this calendar year, powered by its Bunnings and Officeworks units, as coronavirus-enforced curbs led customers to do more digital shopping.

The two units, which provide hardware products and office supplies, helped sales growth in the second-half to date outpace the first-half as more people worked from home, the company said.

The result highlights brick-and-mortar store operators' growing reliance on online trade amid the pandemic.

Wesfarmers said it was uncertain if the sales growth would continue for the rest of the calendar year, as the relaxing of restrictions could alter shopping trends. which operates out of more than 370 locations in Australia and New Zealand, will book about A$70 million ($49 million) in costs due to the lockdown in New Zealand, store closures, and the accelerated roll-out of its online offering.

Wesfarmers added that its discount department stores, Kmart and Target (NYSE:TGT), also saw improved sales in recent weeks, with demand particularly strong for winter clothing.

The company last month said it would close or rebrand nearly two-thirds of its Target stores and take one-off charges of up to A$650 million as the coronavirus crimped demand. = 1.4237 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.