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Wesfarmers share price higher on Victorian COVID-19 update

The Wesfarmers Ltd (ASX: WES) share price is pushing higher on Tuesday after an update on its Victorian operations.

At the time of writing the conglomerate’s shares are up over 1% to $46.44.

What did Wesfarmers announce?

This morning Wesfarmers provided the market with an update on the impact of the business restrictions announced by the Victorian Government.

According to the release, Wesfarmers generated approximately 17% of its retail sales from stores in metropolitan Melbourne in FY 2020.

The good news is that all of the company’s retail businesses in the region will be able to continue operating in some form during the lockdown period. The bare minimum will be via their online operations, through home delivery and contactless click and collect options.

Due to the vital nature of its products, the company’s key Bunnings stores in the region can remain open for trade customers. And while Bunnings will be closed for in-store retail customers, click and collect options will be available.

The same applies to its Officeworks stores, which can continue to service business customers. Whereas Wesfarmers’ Kmart and Target stores in the Melbourne metropolitan region will be unable to service customers in-store.

Although government restrictions allow for the COVID safe operation of distribution centres and other supply chain operations, the company is working closely with suppliers and the government to assess supply chain impacts.

The company’s industrial businesses, including Blackwoods, Workwear Group, Coregas, Australian Vinyls, and Modwood, have operations in Victoria which are expected to continue to operate in accordance with COVID safe guidelines.

“Well equipped to adapt.”

Wesfarmers’ Managing Director, Rob Scott, advised that the company is committed to supporting government and community efforts to limit the spread of COVID-19.

He also appears confident that Wesfarmers is well-positioned to navigate through the disruption.

Mr Scott commented: “Our businesses are well equipped to further adapt their operations to continue to safely support customers and suppliers through these restrictions, with a focus on supporting business, trades and home delivery as well as contactless click and collect in many of our Melbourne metropolitan stores.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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