Wesfarmers boss Rob Scott has warned that customers will face higher prices at Bunnings, Kmart, and Target as the retail giant grapples with rising costs. Speaking at a business event in Perth on Tuesday, Scott said the company is experiencing inflationary pressures across its supply chain, including higher freight, energy, and labour costs.
Price hikes on the horizon
Scott indicated that price increases would be necessary to offset these rising expenses, though he did not specify the exact magnitude or timeline. He emphasised that Wesfarmers is committed to maintaining its competitive edge but acknowledged that some cost pass-through to consumers is inevitable. The news comes as Australian households already face elevated living costs, with inflation remaining stubbornly high.
Impact on retail brands
Bunnings, Australia's largest hardware chain, is expected to see increases on a range of products, from timber to tools. Kmart and Target, which cater to budget-conscious shoppers, may also raise prices on clothing, homewares, and electronics. Scott noted that the company is working to absorb costs where possible but warned that sustained inflation leaves little room to avoid price adjustments.
The announcement has drawn mixed reactions. Consumer advocates expressed concern for low-income families, while analysts noted that Wesfarmers' strong market position may limit customer backlash. The company reported a solid first-half profit in February, driven by resilient demand at Bunnings.
Broader economic context
Wesfarmers' move reflects a wider trend among Australian retailers, including Coles and Woolworths, which have also flagged price rises. The Reserve Bank of Australia has warned that inflation may take longer to moderate, keeping pressure on households. Scott called for government action to reduce business costs, such as energy and regulation, to help ease the burden on consumers.
