Updated: 14.12.2025 (AEST) — Wesfarmers Limited (ASX: WES) heads into the new week balancing “steady as she goes” share-price action with a spikier news cycle: a fresh tax transparency release, a high-profile Kmart product recall, renewed debate about Bunnings pricing, and continued attention on Wesfarmers’ lithium exposure via the Covalent JV.
As of the most recent ASX close (Friday 12 December 2025), Wesfarmers shares finished at A$80.62, down 0.49% on the day. [1]
Wesfarmers share price this week: range-bound trading, small swings
Wesfarmers stock spent the week moving sideways in a fairly tight band. Based on daily trading data for 8–12 December 2025, WES closed:
- Mon (Dec 8): A$80.59
- Fri (Dec 12): A$80.62 [2]
That’s effectively flat week-on-week (about +0.04% from Monday’s close to Friday’s close), with the week’s trading range spanning a low of A$79.89 (intraday) to a high of A$81.89 (intraday). [3]
The bigger picture still matters for context: Investing.com lists Wesfarmers’ 52‑week range as A$67.70 to A$95.175. [4]
Translation for humans: the share price has been consolidating around the low‑A$80s after a volatile year, and this week didn’t break that pattern.
“Updated today” headline drivers: what moved the Wesfarmers narrative in the last few days
Even when the share price naps, the news doesn’t. Here are the developments most relevant to WES investors heading into the week of 15–19 December.
1) Wesfarmers releases its 2025 Tax Contribution Report
Wesfarmers’ newly published 2025 Tax Contribution Report puts a spotlight on the group’s economic footprint and tax governance.
Key takeaways from the report include:
- Wesfarmers says it contributed A$1.6 billion in “government taxes and other charges” in 2025. [5]
- It reports an effective company tax rate (Australian operations) of 30.6% excluding significant items, and 28.3% including significant items. [6]
- The report also outlines a “wealth creation and value distribution” snapshot, including A$46.3b wealth generated and A$12.0b value distributed (with A$2.3b shown as FY2025 dividends). [7]
This isn’t usually a direct share-price catalyst on its own, but it does feed into the long-term institutional lens: governance quality, tax risk, and social licence to operate.
2) Kmart recalls children’s “sensory activity sets” over asbestos risk concerns
This one is both reputationally sensitive and operationally annoying (refunds, supply chain reviews, vendor oversight, and plenty of headlines).
Australia’s Product Safety regulator states the PAW Patrol, Bluey, and Frozen 2 Sensory Activity Sets sold at Kmart are being recalled because the sand “may contain asbestos” (a prohibited substance), after asbestos was detected in some samples. The notice also says respirable asbestos has not been detected, and the risk of fibres becoming airborne is considered low unless mechanically processed (e.g., crushing/pulverising). [8]
ABC News covered the recall and consumer instructions (stop using, safe disposal, refunds). [9]
Why it matters for WES shareholders: Kmart is a major earnings engine inside Wesfarmers. Even if direct financial costs are manageable, the brand trust and regulatory scrutiny angle can linger.
3) “Sand play products” get tougher border treatment after contamination concerns
A broader policy shift can outlast a single recall. The Guardian reports Australian authorities reclassified coloured sand/sensory products as “high risk”, meaning products may require accredited testing/certification before import. [10]
If this hardens into standard practice, it may raise compliance costs and slow product pipelines across multiple retailers (including those inside Wesfarmers).
4) Lithium exposure stays in view: Mt Holland contract engagement reported
Wesfarmers isn’t “a lithium stock,” but it does have meaningful lithium-linked optionality through Covalent Lithium (with partner SQM), which includes the Mt Holland operation.
Business News reports that Wesfarmers and SQM’s Covalent Lithium engaged Iron Mine Contracting for more than three years’ worth of mining service work at Mt Holland near Southern Cross. [11]
At the same time, lithium price expectations have been getting more airtime. The Australian reports banks have been revising forecasts upward in some cases, though there are competing views on how durable any rebound will be. [12]
For Wesfarmers investors, the key is less “lithium hype” and more: how this JV affects capital intensity, ramp‑up execution risk, and longer-run earnings contribution.
5) Bunnings pricing scrutiny resurfaces (again)
A recent story reports customer pushback over regional/metro price differences, with Bunnings citing factors like freight and local competitive conditions. [13]
Separately (earlier in 2025), the ABC/Four Corners examined the practical limits of Bunnings’ price guarantee messaging in certain contexts—useful background for anyone thinking about how Bunnings defends its value proposition. [14]
This doesn’t necessarily change earnings forecasts tomorrow morning, but it does shape the narrative around pricing power, brand trust, and competition—especially in a higher-rate environment where households get pickier.
6) CEO commentary: cost pressure, productivity, and AI as a strategic lever
In a recent interview, Wesfarmers CEO Rob Scott flagged domestic cost pressures (energy, compliance, labour) and discussed technology/automation—including an AI partnership and workforce training focus. [15]
This theme matters because Wesfarmers is essentially a productivity machine: small margin improvements, replicated across vast retail footprints, can compound into real earnings.
Macro backdrop: rates and jobs are the “gravity” under retail stocks
Wesfarmers is diversified, but it is still highly exposed to Australian household spending and sentiment—directly (Kmart, Target, Officeworks) and indirectly (DIY cycles at Bunnings).
Two macro developments dominated the week:
- RBA held the cash rate at 3.60% and warned inflation risks are tilted upward, with commentary interpreted as hawkish relative to a “cuts soon” narrative. [16]
- Australia’s labour market data surprised: Reuters reported jobs fell in November (a notably weaker print than expected), while the unemployment rate held around 4.3%. [17]
Why Wesfarmers investors should care: interest-rate expectations affect (1) consumer demand, and (2) the valuation multiple investors are willing to pay for “defensive quality” retailers.
Analyst forecasts and broker views: what the market expects for WES
Here’s the slightly awkward truth: a lot of analysts like Wesfarmers’ business quality, but not everyone likes the price you have to pay for it.
Consensus targets: clustered around current levels, but with a wide range
- Investing.com shows an average 12‑month target around A$80.82 (13 analysts), with a high estimate A$100 and low estimate A$58, and a consensus stance labelled “Sell” (mix of buy/hold/sell recommendations). [18]
- MarketIndex’s broker consensus snapshot lists WES at A$80.62, with an average target of A$82.75 and a grouped rating of Sell (as of its last update). [19]
Put plainly: a chunk of the market thinks WES is priced close to “fair,” with modest upside—while the bear case is basically a valuation compression story.
Valuation debate: Morningstar’s notably lower fair value (historical reference)
Morningstar previously argued Wesfarmers looked significantly overvalued, giving a fair value estimate around A$58 (mid‑2025 commentary). [20]
That doesn’t mean the share price “must” fall to that number—valuation is not gravity, it’s a map—but it does highlight how sensitive some models are to discount rates and long-run growth assumptions.
Week ahead (15–19 Dec 2025): the catalyst calendar Wesfarmers investors should watch
Wesfarmers doesn’t have a scheduled earnings release in the coming week, so attention shifts to macro signals and rolling headlines.
1) Westpac–Melbourne Institute Consumer Sentiment (Tuesday)
The Melbourne Institute notes the next release is scheduled for Tuesday 16 December 2025 (11am AEDT listed on the Institute’s release note). [21]
IG’s week-ahead preview also flags the consumer confidence release and reiterates how sharply sentiment jumped in November. [22]
Why it matters for WES: consumer sentiment tends to correlate with discretionary demand—exactly the space where Kmart, Target, and Officeworks live.
2) “Rates narrative” after the hawkish RBA hold
FNArena’s week-ahead commentary points directly to consumer sentiment as a near-term check on whether the shift in rate expectations is denting household confidence. [23]
If the market keeps repricing the RBA path (toward “higher for longer” or even hikes), retail multiples can get squeezed even without any immediate change in sales.
3) Flash PMIs and other high-frequency reads
TradingEconomics’ week-ahead notes flag Australia’s consumer confidence and flash PMIs as closely watched. [24]
These are not “Wesfarmers metrics,” but they shape the growth mood music.
4) Ongoing recall/regulatory updates
Given the Kmart recall is fresh and highly visible, investors will watch for:
- any expansion of the recall list,
- any updated guidance from regulators,
- any broader supply-chain remediation steps by Kmart/Target.
The official product safety notice is the anchor document here. [25]
Opportunities vs risks: the realistic bull and bear cases for WES right now
Potential upside drivers
- Defensive retail quality: Wesfarmers is often treated as a “quality compounder,” especially if the economy slows but doesn’t break.
- Productivity upside: automation/AI and operating discipline can lift margins in boring-but-powerful ways. [26]
- Covalent lithium optionality: if lithium pricing improves and Mt Holland execution stabilises, the market may assign more value to the exposure. [27]
Key downside risks
- Reputational/regulatory hits (Kmart recall, and more generally compliance risk in mass retail). [28]
- Higher rates compress the multiple: even if earnings hold up, “expensive defensives” can de-rate when yields rise. [29]
- Household strain: if sentiment rolls over, discretionary baskets get leaner. [30]
Bottom line for Wesfarmers stock this week
Wesfarmers (ASX:WES) ended the week much where it started—around A$80–81—but the information environment is anything but quiet. The market is juggling:
- a reputationally sensitive Kmart recall,
- a hawkish‑tilted RBA backdrop,
- a key read on household mood via consumer sentiment next week,
- and longer-run debates about valuation versus quality.
For the week ahead, the most actionable watchpoints are Tuesday’s sentiment data and any new recall/import-testing developments, because those are the events most likely to change either (a) demand expectations or (b) the risk premium investors apply to retail groups.
References
1. www.investing.com, 2. www.investing.com, 3. www.investing.com, 4. www.investing.com, 5. company-announcements.afr.com, 6. company-announcements.afr.com, 7. company-announcements.afr.com, 8. www.productsafety.gov.au, 9. www.abc.net.au, 10. www.theguardian.com, 11. www.businessnews.com.au, 12. www.theaustralian.com.au, 13. www.news.com.au, 14. www.abc.net.au, 15. www.theaustralian.com.au, 16. www.reuters.com, 17. www.reuters.com, 18. www.investing.com, 19. www.marketindex.com.au, 20. www.morningstar.com.au, 21. melbourneinstitute.unimelb.edu.au, 22. www.ig.com, 23. fnarena.com, 24. tradingeconomics.com, 25. www.productsafety.gov.au, 26. www.theaustralian.com.au, 27. www.businessnews.com.au, 28. www.productsafety.gov.au, 29. www.reuters.com, 30. melbourneinstitute.unimelb.edu.au
