Wesfarmers Ltd (ASX: WES) shares are rising on Wednesday.
In morning trade, the Bunnings and Kmart owner's shares are up 2.5% to $82.00.
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Why are Wesfarmers shares rising?
This morning, Wesfarmers released its 2026 Strategy Briefing Day presentation.
Investors appear to be taking a positive view of the company's growth plans across its portfolio, particularly with the key Bunnings and Kmart brands.
Wesfarmers highlighted three key messages for the market. It is accelerating its growth and productivity agenda, it has a portfolio of high-quality businesses with a mix of growth and resilience, and it retains a strong balance sheet with flexibility to invest.
The company also pointed to its growing digital, data, and artificial intelligence capabilities as an important driver of future sales and earnings growth.
Bunnings remains the key growth engine
Bunnings was a major focus of the update.
Management said the business continues to be supported by strong foundations, including its lowest prices, widest range, and best experience strategy.
Bunnings is looking to grow by expanding its offer, improving its store network, accelerating commercial sales, and developing adjacent opportunities.
One area of focus is commercial customers. Bunnings is relaunching its commercial loyalty platform and improving its delivery, service channels, and digital tools for builders, trades, businesses, and organisations.
The company is also expanding in newer areas such as home electrification through Zelora, its home renewable energy offer.
Its marketplace is another growth opportunity. Bunnings now has around 300,000 marketplace products across more than 600 sellers and plans to launch the marketplace in New Zealand in the second quarter of FY 2027.
Artificial intelligence is also becoming a bigger part of the Bunnings strategy. The company said its AI-powered shopping tool, Buddy, is helping customers plan projects, find products, and complete purchases, while also driving higher basket sizes and conversion.
Kmart focusing on value and growth
Kmart Group was another key part of the presentation.
Management said customers remain focused on value and that Kmart is continuing to invest in its low-cost operating model.
The business has made more than 2,500 price drops in FY 2026 and is expanding strategic growth categories.
Kmart is also investing in store format innovation, with 16 stores now trading in the new Kmart Plan C+ format. This is expected to increase to 40 stores by the end of FY 2027.
Digital growth is another priority. Kmart has launched a third-party marketplace, is scaling agentic commerce, and continues to see strong engagement across its digital platforms.
The group also sees international growth potential from its Anko brand, with five Anko stores operating in the Philippines and another five planned by the end of FY 2027.
Other growth areas
Wesfarmers also provided updates on Officeworks, WesCEF, and Wesfarmers Health.
WesCEF's lithium project is progressing, with nameplate spodumene production achieved in FY 2026 and nameplate lithium hydroxide production targeted for the second half of calendar year 2027.
Wesfarmers Health is also progressing its multi-year transformation, with Priceline Pharmacy, digital health, loyalty, and wholesale efficiency key priorities. This includes the rollout of the atomica store brand, which stocks K-Beauty products like Medicube and appears inspired by Korean beauty retailer Olive Young.
Overall, today's update reinforces Wesfarmers' long-term strategy of investing in strong businesses, expanding addressable markets, and using technology to improve productivity.
With Bunnings and Kmart continuing to show growth opportunities, investors appear to be backing the company's strategy on Wednesday.
