Wesfarmers flags slowing sales growth for Kmart

Company News

by Anna Napoli

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.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.