Wesfarmers is one of Australia’s largest publicly listed companies, operating in multiple industries, including retail, chemicals, and industrials. Given its size and significance in the Australian economy, many investors are curious about who owns Wesfarmers and how it is controlled.
In this article, we break down Wesfarmers’ ownership structure, major shareholders, decision-makers, financial standing, market position, and subsidiaries.
History of Wesfarmers
Wesfarmers was established in 1914 as a farmers’ cooperative in Western Australia. Over the decades, it expanded into various industries, including retail, industrial services, and chemicals.
The company went public in 1984 and has since grown into a diversified conglomerate with businesses such as Bunnings, Officeworks, and Kmart Group under its umbrella.
Who Owns Wesfarmers?
Wesfarmers is a publicly traded company listed on the Australian Securities Exchange (ASX) under the ticker WES.
It has a vast number of shareholders, but no single entity holds a controlling stake. The largest shareholders include institutional investors such as banks, investment funds, and superannuation funds.
List of Wesfarmers Shareholders
Below are some of the major shareholders of Wesfarmers:
1. State Street Global Advisors Trust Co.
- Ownership Percentage: Approximately 2%
- Role: A leading asset management firm that holds shares in Wesfarmers as part of its diversified global investment portfolio. State Street manages funds for institutional investors, including pension funds and governments, and provides index investing strategies.
- Control: Limited control, as it does not have a significant voting power. However, its large assets under management allow it to influence corporate decisions through proxy voting and engagement with company leadership.
2. Australian Foundation Investment Co. Ltd.
- Ownership Percentage: Approximately 1.5%
- Role: One of Australia’s largest listed investment companies, AFIC invests in major Australian companies, including Wesfarmers, as part of its long-term value investment strategy. AFIC aims to provide consistent returns for its shareholders through dividends and capital appreciation.
- Control: Minimal influence on daily operations but actively engages in corporate governance matters, often voting on key issues during annual general meetings.
3. Vanguard Group Inc.
- Ownership Percentage: Approximately 1.3%
- Role: A global investment management firm with significant passive index-tracking investments in Wesfarmers. Vanguard’s funds are widely used in retirement accounts and ETFs, making it one of the largest investors in many global companies.
- Control: Vanguard does not directly manage or control Wesfarmers’ operations but exercises shareholder rights through voting and corporate engagement strategies.
4. BlackRock Investment Management
- Ownership Percentage: Approximately 1%
- Role: The world’s largest asset manager, BlackRock holds shares in Wesfarmers through its diversified global investment portfolios, including ETFs and mutual funds. BlackRock also integrates environmental, social, and governance (ESG) considerations into its investment strategies.
- Control: Limited direct control, but its investment decisions and voting power at shareholder meetings allow it to have some influence over governance practices and corporate policies.
5. Retail and Institutional Investors
- Ownership Percentage: The remaining shares are widely held by retail investors and smaller institutional investors.
- Role: Individual and smaller fund investors contribute to Wesfarmers’ broad shareholder base, helping ensure liquidity in the stock market. Many Australians invest in Wesfarmers through superannuation funds, making it a key stock in retirement portfolios.
- Control: No single retail investor has a significant stake, but collectively, they participate in governance through voting at annual general meetings.
Who Controls Wesfarmers?
Despite having numerous shareholders, Wesfarmers is controlled by its board of directors and executive leadership team. The board is responsible for making strategic decisions, while the CEO and management team handle day-to-day operations.
The current Managing Director and CEO is Rob Scott, who plays a crucial role in steering the company’s direction. The company’s governance is further reinforced by independent non-executive directors, ensuring balanced decision-making.
Wesfarmers Annual Revenue and Net Worth
- Annual Revenue (2023): AUD 43 billion
- Net Profit (2023): AUD 2.35 billion
- Net Worth (Market Capitalization): Approximately AUD 60 billion
Wesfarmers’ financial success is largely driven by its diversified business operations. Its retail segment, which includes Bunnings, Kmart, Target, and Officeworks, generates the majority of revenue.
The company’s industrials and chemicals division also contributes significantly, supplying essential goods and services to various industries. Wesfarmers maintains strong profitability by optimizing operational efficiency, expanding into new markets, and leveraging economies of scale.
Wesfarmers Market Share and Competitors
Wesfarmers holds a dominant market position in multiple sectors, including:
- Retail (Bunnings, Kmart, Target, Officeworks): Market leader in Australia, with an estimated 30%+ share in the home improvement and discount retail sectors.
- Chemicals and Industrial: One of the largest players in Australia, supplying chemicals, fertilizers, and energy products.
- E-commerce: Expanding online presence to compete with digital retailers.
Top Competitors
Woolworths Group
Woolworths Group is one of the largest retail companies in Australia, competing directly with Wesfarmers in the supermarket and department store sectors. Woolworths owns and operates major grocery chains such as Woolworths Supermarkets, Big W, and Dan Murphy’s. With a dominant presence in the grocery market, Woolworths holds a significant market share, making it one of Wesfarmers’ biggest rivals in the retail space.
Amazon Australia
Amazon Australia has been growing rapidly since its launch, challenging Wesfarmers’ retail brands by offering a vast range of products across multiple categories, including electronics, home goods, and office supplies. Its strong focus on e-commerce, fast delivery services, and subscription-based shopping through Amazon Prime make it a formidable competitor to Wesfarmers’ physical and online retail businesses like Officeworks and Kmart.
Coles Group
Coles Group, once a subsidiary of Wesfarmers, was spun off in 2018 and now operates independently as a leading supermarket chain in Australia. It competes with Wesfarmers’ retail operations by offering groceries, liquor, and financial services. With a strong market presence and ongoing investments in digital transformation and convenience-driven services, Coles remains a significant competitor in the supermarket sector.
JB Hi-Fi
JB Hi-Fi is one of Australia’s largest consumer electronics retailers, directly competing with Wesfarmers’ Officeworks in the technology and office supplies space. JB Hi-Fi offers a vast range of electronics, entertainment, and home appliances, while its subsidiary, The Good Guys, further strengthens its position in the home electronics and whitegoods market. This competition puts pressure on Officeworks’ ability to maintain market share in the office and technology retail sector.
Metcash
Metcash is a wholesale distribution and marketing company that competes with Wesfarmers in the grocery and hardware sectors through brands like IGA, Mitre 10, and Home Timber & Hardware. It supplies independent supermarkets and retailers, offering an alternative to the corporate dominance of Woolworths and Coles. In the hardware segment, Mitre 10 competes with Wesfarmers’ Bunnings Warehouse, though it holds a smaller share of the market.
Brands Owned by Wesfarmers
Wesfarmers owns and operates multiple well-known brands, including:
Bunnings Warehouse
Bunnings Warehouse is the leading home improvement and hardware retailer in Australia and New Zealand. It dominates the market with a vast range of products, including building materials, tools, outdoor living, and garden supplies. Bunnings caters to both retail and trade customers, with strong brand recognition and an extensive network of warehouse-style stores.
Kmart
Kmart is a discount department store offering a broad range of affordable products, including clothing, home essentials, electronics, and toys. Known for its budget-friendly prices, Kmart has undergone a successful transformation in recent years, focusing on private-label products and in-house design to improve profitability and customer appeal.
Target Australia
Target Australia operates in the department store segment, focusing on stylish yet affordable fashion, homewares, and everyday essentials. It differentiates itself from Kmart by offering a more curated selection of higher-quality products. Target has been repositioning itself to appeal to a mid-range consumer base while leveraging online sales growth to remain competitive.
Officeworks
Officeworks is Australia’s largest supplier of office supplies, stationery, technology products, and furniture. It serves both businesses and consumers, offering a wide selection of office solutions. With an increasing focus on e-commerce, Officeworks continues to expand its digital presence while maintaining strong in-store sales.
WesCEF (Wesfarmers Chemicals, Energy & Fertilisers)
Wesfarmers Chemicals, Energy & Fertilisers (WesCEF) operates across industrial chemicals, energy production, and agricultural fertilisers. It supplies critical products for various industries, including mining, farming, and manufacturing. WesCEF’s operations are a key contributor to Wesfarmers’ diversified revenue streams, with a focus on sustainability and innovation in chemical production.
Conclusion
Wesfarmers is a publicly traded company with no single controlling shareholder, making it a well-balanced corporation. The company is managed by its board of directors and executive leadership team, ensuring strong governance. With a diversified portfolio of successful brands, Wesfarmers continues to thrive in the Australian market.
FAQs
Is Wesfarmers Australian-owned?
Yes, Wesfarmers is an Australian company publicly traded on the ASX, with its largest shareholders being institutional investors.
Who is the largest shareholder of Wesfarmers?
State Street Global Advisors Trust Co. is currently the largest shareholder, holding around 2% of the company’s shares.
Does Wesfarmers own Coles?
No, Wesfarmers spun off Coles in 2018, and it now operates as an independent company.
What are Wesfarmers’ biggest brands?
Some of its most notable brands include Bunnings, Kmart, Target, and Officeworks.