. For managing director Rob Scott, the results validate a simple, not flashy, plan. “Bunnings and Kmart Group’s everyday low prices continued to drive sales and earnings growth. Disciplined execution of strategies helped offset cost pressures and delivered operating leverage across both businesses,” he said.  Bunnings cements its reign as the growth engine Bunnings remains Wesfarmers’ undisputed powerhouse, delivering the steady, category-dominant growth that has made it the benchmark against which many other Australian retailers measure themselves. The hardware giant grew revenue 4.1 per cent to $20.4 billion and lifted earnings 5.1 per cent to $2.46 billion, fuelled by a broadening range spanning DIY home repairs, renovations, tools, pet and automotive categories. Scott credited the result to structural resilience rather than a single hot category. “Bunnings’ solid trading performance reflected the strength and resilience of its offer and ability to deliver growth through a range of market conditions,” he said. The result also marks the end of an era. Chief executive Mike Schneider, who has led Bunnings since January 2016 and joined the business back in 2005 as a state operations manager, will retire in February 2027, handing the reins to current chief customer officer Rachael McVitty. “Mike has been an outstanding leader of Bunnings, leading the business across a decade of consistent growth in sales and earnings while strengthening Bunnings’ strong culture and trust with the community,” Scott said. McVitty, who steps into the role as deputy managing director from February 1, inherits a business at its commercial peak – a rare luxury for an incoming chief executive. Kmart Group’s Anko bet keeps paying off Where Bunnings delivers steady reliability, Kmart Group is the strategic bet paying off in bigger increments each year. Sales rose 2.8 per cent to $11.7 billion, while earnings jumped a healthier 6 per cent to $1.11 billion – evidence that Kmart is extracting more profit from every dollar of sales. Digital momentum was a standout, with online and marketplace sales surging 19.7 per cent in the second half alone, and monthly active app users climbing past 1.6 million. Much of the credit goes to Anko, now roughly 85 per cent of Kmart’s range. Scott cited “the strong value credentials of its Anko products” alongside “range renewal and expansion” and accelerating digital sales as key earnings drivers. Kmart is also taking Anko offline with its new K Home furniture showroom in Melbourne, a direct swipe at IKEA, is already gaining traction, though Scott says the format still needs refining before a wider rollout. Overseas, tariff anxiety has slowed Anko’s expansion push, even as its six-store Philippines venture performs encouragingly. Target remained the soft spot, hit by weak apparel demand and a Queensland distribution centre closure after severe weather. Officeworks takes a deliberate step back to leap forward Officeworks was the one blemish on an otherwise pristine scorecard. Revenue grew a respectable 3.7 per cent to $3.7 billion, but earnings collapsed 22.2 per cent to just $165 million, dragged down by one-off transformation costs tied to clearing unpopular stock and migrating its private-label supply chain onto Anko’s infrastructure. Scott framed the pain as investment rather than failure. “Officeworks’ earnings reflected one-off costs associated with its transformation program, which commenced during the first half of the 2026 financial year,” he said. “Successful execution of the program is expected to drive long-term earnings growth by transitioning the business to a low-cost operating model and improving the customer value proposition”. Private-label goods – stationery, art supplies and tech accessories under J. Burrows, Keji and Studymate – already drive almost half of Officeworks’ revenue, and routing them through Anko’s factory-direct model is expected to sharpen margins over time. “By being able to go direct to the factories and have a deeper involvement in product design, we’re able to deliver much better quality products at a much lower price,” Scott said. The transition isn’t friction-free, though. Sales growth has slowed to 2.7 per cent in the new financial year’s first seven weeks, down from 4.7 per cent a year earlier, compounded by tech price rises and supply shortages. Whether that short-term pain converts into Kmart-style margins is Officeworks’ defining test over the next year.