FEAR & GREED | Business News Q+A: Wesfarmers CEO Rob Scott on Bunnings, Kmart & Target
Feb 19, 2026
Rob Scott, Managing Director and CEO of Wesfarmers, who runs Bunnings, Kmart, Officeworks and chemicals operations. Discussion covers how household budgets are tightening despite headline spending. Talks about residential construction effects on Bunnings and modular opportunities. Explores productivity and early-stage AI at Bunnings and Kmart. Covers strategy for lithium, chemicals and why Target remains in the portfolio.
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Household Spending Is Uneven
- Wesfarmers sees aggregate spending holding up but lower-income households are far more squeezed by inflation and rates.
- Rob Scott says customer cohorts show low-income families are being more discerning with purchases due to reduced disposable income.
Housing Shortage Hurts Renovation Demand
- Residential construction is sluggish and that drag affects parts of Bunnings' commercial business.
- Rob Scott calls housing shortages a national economic challenge that also creates opportunities for their businesses.
Productivity Drove Profit Leverage
- Profit grew faster than sales driven by productivity and new-business contributions like lithium and health.
- Rob Scott says digitising processes and early-stage AI are part of productivity gains but AI adoption is only beginning.