Wesfarmers said it advanced its data and digital capabilities over the past financial year, resulting in increased use of AI and predictive analytics.
Some of that progress was attributed to the work and investment made in its data and digital division, OneDigital.
Wesfarmers managing director Rob Scott said over the year, the company realised gains “from productivity and efficiency benefits from proactive initiatives in recent years”.
“This includes supply chain modernisation projects, the digitisation of operating processes, and the increasing use of AI and predictive analytics,” Scott said.
He noted benefits were being seen in the group’s OnePass membership program, as well as in the ongoing creation of a groupwide shared data set.
“The investments made in recent years to develop the group’s data and digital capabilities are gaining traction and delivering value across the operating divisions,” Scott said.
“Our businesses have also continued to develop and trial more sophisticated analytics models, which are delivering improved outcomes in areas such as demand forecasting, product design, in-store and online availability and marketing effectiveness.
The OnePass membership program “is adding value to customers in our divisions with more to come this year.”
The program was expanded over the year, bringing in new partnerships with Bunnings Warehouse, Disney+ and Flybuys, and additional member benefits for both online and in-store shoppers.
As Wesfarmers continued investments in its divisions’ digital sales channels, it reached an average of 210 million digital interactions with customers per month in the 2023 financial year.
Scott said Catch has addressed issues leading to “improvements to performance in the second half” following reporting disappointing results in the first half.
“Encouragingly Catch continues to attract and retain a younger and digitally native customer cohort with strong engagement through the OnePass program,” he said.
Its investment in OnePass and its customer and data insight capabilities through OneDigital resulted in an operating loss of $82 million for the year, similar to the prior period.
Bunnings
Scott said Bunnings turned in “solid sales growth”; revenue increased 4.4 percent to $18.5 billion for the year.
“Bunnings again demonstrated its capacity to grow its proposition and addressable market whilst maintaining strong returns during the year,” Scott said.
“Bunnings also continues to make significant progress on its digital agenda, with increasing engagement through the PowerPass app, OnePass and FlyBuys programs along with improvements in its educational and social content,” Scott said.
Kmart
Kmart’s revenue increased 16.5 percent to $10.6 billion for the year with reported earnings of $769 million, 52.3 percent above the prior year.
Scott said this reflected its simplified operating initiatives.
The group will also pursue opportunities “to leverage the strengths of Kmart technology platforms and selected Anko ranges within Target.”
Officeworks
Its Officeworks stores boosted revenue to 5.9 percent for the year to almost $3.4 billion with sales growth improving due to back-to-school trading, growth in business–to–business (B2B) sales, and continued development in technology categories.
The company reported Officeworks will continue to modernise its supply chain during the coming year, including completing the transition to a new Victorian import distribution centre (IDC)
It will also progress the development of a new customer fulfilment centre (CFC) in Western Australia, due to open in the first half of 2024.
Plans for Officeworks to join the OnePass program are also underway and expected to be completed in the first half of next year.