Retail giants Kmart, Target, Bunnings to cash in on cost of living crisis after profit slump

Retail sale Giant Wesfarmers has posted a drop in annual profits but insists its brands are in a prime position to capitalize on the cost-of-living crisis being felt around the world. Australia.
the owner of buns, Kmart and Target on Friday announced net profit after taxes of $2.35 billion for fiscal 2022, a drop of 2.9 percent.

Wesfarmers managing director Rob Scott attributed the drop to disruptions caused by COVID-19, but noted the group’s profits rose in the second half of the fiscal year after nationwide lockdowns ended.

The Kmart group, which also includes Target and online retailer Catch, saw revenue fall 3.5 percent to $9.13 billion. (APA)

“The group’s financial results for the year reflect the material impact of COVID-19 on business conditions during the first half, which included weeks in which nearly half of the group’s retail stores were subject to business restrictions or closed,” Scott said.

“In the second half of the year, Wesfarmers delivered strong after-tax net profit growth of 13.1%…and business conditions improved as restrictions were eased.”

The group says it is poised to tap into value-seeking buyers as Australians feel pressure from the rising cost of living.

“The group’s retail businesses are well positioned as cost-of-living pressures hit family budgets and value once again becomes increasingly important to customers,” it said in a statement.

“Retail businesses will maintain their focus on meeting changing customer needs and delivering even greater value, quality and convenience.”

People queue to receive a Covid-19 vaccine at a Bunnings hardware store in Brisbane.
Bunnings’ revenue rose to $17.75 billion, a jump of 5.2 percent. (Getty)

The Kmart group, which also includes Target and online retailer Catch, saw revenue fall 3.5% to $9.13 billion and profit fall 39.7% to $418 million in 2022.

There was better news for Bunnings, whose revenue rose to $17.75 billion, a jump of 5.2 percent.

The hardware giant’s profit also increased, 0.9% to $2.2 billion.

Officeworks, which also operates under the umbrella of Wesfarmers, saw profit fall 14.6% to $181 million despite a revenue increase of $3.17 billion, up 4.6% from 2021.

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