Rob Scott 1.2 1 idea

Wesfarmers (parent of Bunnings/Kmart Australia) reported that "lower income households have less money to spend" and customers are becoming "more value conscious" due to persistent inflation and high interest rates. While the company is managing well, the macro commentary signals a tapped-out consumer in Australia. Retailers facing cost-of-living headwinds struggle to expand margins when volume growth depends on price cuts. AVOID WES (Wesfarmers) until inflation data stabilizes and consumer discretionary spending power returns. An unexpected rate cut by the RBA could reignite consumer spending.