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Wesfarmers ramps up pressure on Woolworths

Wesfarmers plans to invest at least AUD2 billion (USD1.58b) into its two largest businesses, Coles and Bunnings, over the next year, intensifying pressure on arch rival Woolworths.

The Perth based conglomerate has unveiled plans to open new supermarkets and home improvement stores, invest cost savings from supply chain reforms and job cuts into reducing prices, improve service in stores and ramp up its digital and online presence.

Wesfarmers managing director Richard Goyder says the cashed up company continues to scout for acquisitions after selling its insurance businesses last year, but in the current environment it felt more comfortable investing in its fastest-growing businesses.