Wesfarmers share price higher on big Bunnings news

Wesfarmers' Bunnings business is expanding into a major new category…

| More on:
man with dog on his lap looking at his phone in his home.

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Wesfarmers Ltd (ASX: WES) share price is on the move on Tuesday morning.

At the time of writing, the conglomerate's shares are up slightly to $48.61.

What's going on with the Wesfarmers share price?

The catalyst for the rise in the Wesfarmers share price today appears to have been some big news out of the company's Bunnings business.

No, Harry Styles hasn't agreed to tour the world in a Bunnings straw hat! Rather, the hardware giant is going to expand into the pet care market. This marks the business' biggest category expansion in two decades.

According to the AFR, Bunnings' pet care department will launch next month and include almost 1,000 new items as part of its aim of winning a greater slice of the growing $10 billion specialty pet sector.

Bunnings' managing director, Mike Schneider, told the news outlet:

Between working from home more and potentially not spending any disposable income on other categories, we see people doing things around the home (DIY). Over the last few years we still have some really strong performance in the limited range of pet products … so this is just a logical next step.

The hallmark of Bunnings' success over the years has to do with being very focused on the things where it believes it can add value, and I think convenience, price and range on an assortment are things that are very much at the core of Bunnings. The challenge of services is the ability to execute them at scale.

Battle on with Woolies

It is also worth noting that this move brings Wesfarmers head-to-head with arch-rival Woolworths Group Ltd (ASX: WOW) in yet another category.

The latter made a $586 million investment in Petspiration at the end of the last year, giving it a 55% stake in the PETstock business.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

a smiling woman looks towards the camera as she tends to the engine under the lifted bonnet of her car.
Earnings Results

Bapcor share price resilient following record half year revenues

ASX 200 investors are mulling over Bapcor’s half year results today.

Read more »

Close up of a sad young woman reading about declining share price on her phone.
Earnings Results

Accent share price sinks 8% on earnings slump and dividend cut

This footwear retailer's earnings took a dive during the first half.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Consumer Staples & Discretionary Shares

ASX earnings: What can we expect from Coles shares next week?

Will Coles' next earnings be as dramatic as Woolies' were?

Read more »

Two race cars on a track at sunset.
Earnings Results

This ASX 300 stock just hit a new 52-week high on strong profit growth

This retail stock is defying inflation and booking 25% profit growth in the first half.

Read more »

Woman smiles at camera at she buys greens from the supermarket.
Broker Notes

Are Woolworths shares dirt cheap following the selloff?

Is now the time to pounce? Let's see what one leading broker thinks.

Read more »

Two men in a bar looking uncertain as they hold a betting slip and watch TV.
Earnings Results

Tabcorp share price tumbles 13% on half-yearly earnings loss

The wagering and gaming company has hit a new 52-week low.

Read more »

A young man in a retail shop pays for his purchases using a card
Consumer Staples & Discretionary Shares

Here are 3 ASX retail shares moving up to 19% on half-year results today

Here's how the market is reacting to these results releases today.

Read more »

High fashion look. glamor closeup portrait of beautiful sexy stylish Caucasian young woman model with bright makeup, with red lips, with perfect clean skin.
Earnings Results

Lovisa share price soars after opening 74 new stores in first half

The market not worried this time about a decrease in comparable store sales, which bought the retail stock down in…

Read more »