Wesfarmers Ltd (ASX: WES) shares are in the spotlight this week.
At the close of the ASX on Wednesday afternoon, the conglomerate's shares ended marginally lower, down 0.15% to $79.03 a piece.
Wesfarmers shares have now rebounded around 11% from a 52-week low recorded in late-May. But they're still 3% lower for the year-to-date and 6% below trading levels seen this time last year.
For context, the S&P/ASX 200 Index (ASX: XJO) is around 1% higher for the year-to-date and 4% higher than 12 months ago, at the time of writing.
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So, why are Wesfarmers shares catching investor attention this week?
Earlier this week, Wesfarmers made a major business restructuring announcement.
In a post to the ASX, Wesfarmers said that the Industrial and Safety businesses, Blackwoods and Workwear Group, will transition into Wesfarmers-owned Bunnings Group.
Management said the change is expected to improve operational efficiencies, strengthen Bunnings' position in the small and medium-sized business market. This is all while also retaining Blackwoods and Workwear Group as standalone brands.
The Industrial and Safety businesses will transition to Bunnings on 1 July 2026. Their financial contributions will be included in Bunnings' results for the first half of the 2027 financial year.
Bunnings will continue to disclose key sales metrics excluding Blackwoods and Workwear Group, such as total retail sales and store-on-store sales.
Wesfarmers does not expect to record any material one-off costs associated with the transition and will provide further updates at its full-year results in August 2026.
The announcement comes ahead of Wesfarmers' upcoming annual strategy briefing day next week.
Management is expected to provide updates on Bunnings' growth planes, Kmart and Officeworks financial performance, and the long-term earnings outlook.
It looks like investors are buying back into the shares in the hope that the update will be impressive.
What's next for the shares?
According to TradingView data, analysts are reserved about the outlook for Wesfarmers shares over the next 12 months.
Out of 11 analysts, seven have a hold rating on the Bunnings and Kmart owner's shares. Another two have a buy or strong buy rating, and two have a sell rating.
The average $75.21 target price implies a potential 5% downside at the time of writing. Meanwhile, some analysts think the shares could climb 6% higher to $84, and others think Wesfarmers shares could sink another 17% to $65.97.
