Wesfarmers
(ASX:WES) retailer Kmart has experienced slowing sales growth over the second half of the 2019 financial year.
The stalling sales are a result of competitive market conditions and increased spending on promotional activity.
Following several years of strong volume growth Kmart's trading remained in line with the first half, increasing by 1.8 per cent and comparable sales increasing by 0.2 per cent.
Meantime, Target's total sales in the second half decreased by 3.6 per cent while comparable sales decreased by 2.3 per cent.
Wesfarmers says the result is due to ongoing optimization and highlighting that Target’s current offer requires ongoing repositioning.
Its been a busy week for the conglomerate with its $230 million purchase of online retailer Catch Group and its investor day about to kick off this morning.
Shares in Wesfarmers
(ASX:WES) closed 0.80 per cent lower at $38.25 yesterday.
