Perth, May 11, 2026, 02:08 AWST
Wesfarmers Ltd. faces renewed selling going into Monday, with shares sliding 1.95% to finish at A$72.25 on May 8—off the session high of A$73.24, according to company data from LSEG. As oil-driven volatility rattles the ASX, investors are questioning if the Bunnings and Kmart parent can push through price hikes without denting demand.
The lingering cost shock isn’t going anywhere. On Sunday, Reuters said most Gulf stock markets slipped, weighed down by renewed drone strikes and shaky prospects for Iran peace negotiations—this, even after the first Qatari LNG vessel managed to transit the Strait of Hormuz since fighting broke out.
This wasn’t just about Wesfarmers. The S&P/ASX 200 dropped 1.51% to 8,744.4 on Friday—marking its weakest session since mid-March. Morningstar and AAP both pointed to Woolworths, Wesfarmers, Goodman Group and CSL as dragging down their respective sectors. But for Capital.com’s senior market analyst Kyle Rodda, Australia’s underperformance stood out, especially considering the week had otherwise been stronger.
Wesfarmers is already feeling the squeeze from freight and fuel, with Chief Executive Rob Scott telling the Macquarie Australia Conference that fuel surcharges—both from international container shipping and local transport operators—are weighing hardest on costs. “Some prices are going to have to go up,” he warned, pointing to building supplies like PVC pipe, which rely on petrochemicals—oil-and-gas-based materials—for their manufacture. Reuters
Pressure is showing up across Wesfarmers’ wide-ranging holdings. The group counts businesses in home improvement, building materials, health and beauty, chemicals, general merchandise, apparel, fertilisers, lithium, office and tech products, and industrial safety.
With competition tightening, the group has little scope to push through sweeping price hikes. Woolworths’ Big W announced back in April that it dropped shelf prices on over 2,000 items. On the hardware side, Metcash is leaning on brands like Mitre 10, Home Hardware, and Total Tools to anchor its value message across the country, making price the battleground in both hardware and discount retail.
Oil’s still the pivot. Brent crude finished Friday at US$101.29 a barrel, after surging up to 3% earlier in the day. John Kilduff, partner at Again Capital, told Reuters the market is caught “between a breakthrough” and fresh conflict. Reuters
Wesfarmers is dipping a toe outside its main retail businesses, but don’t expect it to move the earnings needle right away. Last week, the company announced a 50:50 joint venture with Built Group, dubbed Built Living, and pledged as much as A$100 million for a new Western Australia facility. The project aims to back over 2,000 apartments annually, relying on Design for Manufacture and Assembly—a factory-driven construction approach. Wesfarmers flagged that this venture isn’t likely to make a material difference to earnings this financial year.
The risk is straightforward: if tensions in the Gulf drag on and keep freight and fuel costs high, Wesfarmers faces a tough call. It can either absorb those extra costs or push them onto households already feeling the pinch. AMP chief economist Shane Oliver told ABC the longer the Strait of Hormuz remains shut, the “greater the hit” for both global and Australian economies. ABC News
Two dates on investors’ radar: Monday’s ASX:WES open and the company’s next Strategy Briefing Day, set for June 10. Wesfarmers has also marked August 27 for its 2026 full-year results.
