SYDNEY, March 5, 2026, 18:09 AEDT
- Wesfarmers (WES.AX) shares ended down 0.66% at A$75.57.
- Australian household spending rose in January but annual growth cooled to 4.6%, the slowest since May.
- The Reserve Bank of Australia’s cash rate target is 3.85%, with the next policy decision due March 17.
Wesfarmers Limited shares fell on Thursday, closing down 0.66% at A$75.57, as investors weighed fresh signs that Australian households are still pulling back on non-essential spending. 1
Data from the Australian Bureau of Statistics showed the monthly household spending indicator rose in January to A$78.98 billion, but annual spending growth slowed to 4.6% from 5% in December. “Consumers tightened their belts at the start of 2026,” said Harry McAuley, an economist at Oxford Economics Australia. 2
Some economists argue the spending figures reduce the case for an immediate rate rise. “Today’s household spending data probably weakens the case for a rate hike in March,” Abhijit Surya, senior APAC economist at Capital Economics, wrote. 3
That matters for Wesfarmers because its biggest businesses are tied to discretionary demand. The company owns hardware chain Bunnings and discount retailer Kmart Group, while Officeworks sells office and tech supplies to households and small businesses.
Kmart competes for value-conscious shoppers with Woolworths-owned Big W and other discount chains, while Bunnings dominates a market that includes Metcash-backed operators such as Mitre 10 and Home Hardware. When households turn cautious, pricing gets sharper and volume growth is harder to find.
Wesfarmers flagged those pressures in February when it reported a 9.3% rise in first-half net profit after tax to A$1.6 billion, but warned of uneven consumer spending after early second-half trading missed expectations. Chief executive Rob Scott said “lower-income families … bear the brunt of it” as inflation lifts living costs. 4
The Reserve Bank of Australia’s cash rate target — the overnight rate banks charge each other, which influences borrowing costs across the economy — is 3.85%, effective February 4, with the next update scheduled for 2:30 p.m. on March 17. 5
Still, there is room for the picture to shift. The spending indicator has been volatile month to month, and a rebound in February and March would ease pressure on retailers, even if households stay price-sensitive. Another rate rise, though, risks pushing more demand into essentials and away from big-ticket and discretionary categories.
Investors are also heading into a cash-return window. Wesfarmers’ interim dividend is 102 Australian cents a share, fully franked, with a record date of Feb. 25 and payment due March 31; the price for shares invested under its dividend investment plan was listed as “TBC”. 6
The company’s next scheduled results are due on Aug. 27. Until then, the near-term read is likely to come from household spending data, any changes in rate expectations and how hard retailers have to lean on price to keep customers coming through the door. 7
