Shares in Value Logo
Product Review Img Vertical

Date : 30/01/2022

How Retail Brands Took The Top Spot Replacing Financial Brands In Australia’s Most Valuable Brands Lists

Why Stock Prices Of Retails Stocks May Go Up On ASX?

The Wesfarmers stock price (ASX: WES) bounced back 4% at the time of writing after struggling for the last five days.

Shares in the conglomerate are trending up today amid reports mentioning the group is in the process of hiring new recruits to potentially establish a new healthcare fund.

With the group’s recent acquisition of Australian Pharmaceutical Industries (ASX: API) for circa $760 million, Wesfarmers has already embarked on its first escapade in the sector.

Many wonder what the group’s next acquisition might be and whether there is any link to the recent hiring events and its next moves.

Apart from Wesfarmers’ new venture into healthcare, owners of Wesfarmers ASX shares have something to celebrate this week. Hence, two of the retail conglomerate’s businesses were named Australia’s three strongest brands.

Bunnings has been crowned Australia’s strongest brand, while Officeworks came third.

Australia’s strongest retail brands

Here’s how retail brands took the top spot replacing financial brands in Australia’s most valuable brand lists.

The Wesfarmers share price might be having a bad week. Thus, Wesfarmers stock has slumped about 5% since last Friday’s close. Although, two of the company’s major businesses have claimed a new achievement.

According to the Australian Financial Review (AFR) reporting, Brand Finance Australia calculates a brand name “strength” using metrics including marketing investment, familiarity, loyalty, and reputation.

Brand Finance not only found that Bunnings is Australia’s strongest brand, but that its brand strength is also the most improved. AFR reportedly estimated the Bunnings brand to be worth approximately $4 billion, an appreciation by 46% year-on-year.

Bunnings’ place on the ranking was helped by its good response to residential and trade demand and by facilitating the vaccination rollout.

Officeworks is Australia’s third strongest brand, behind Woolworths Ltd (ASX: WOW). The business reportedly has an estimated valuation of $473 million.

What could be Wesfarmers’ next move?

There’s a bright future ahead for Wesfarmers stock investors.

Wesfarmers is valued at $59 billion by market cap. The company won the acquisition race to purchase API against its rival Woolworths (ASX: WOW).

There are talks of Wesfarmers setting up a healthcare fund to potentially target a big fish within the healthcare space with the momentum in place.

It is understood that Wesfarmers is targeting top executives in the health insurance space to build out its new venture. Hence, API would provide the basis of a new Healthcare division of Wesfarmers and a platform to invest and develop capabilities in this growing sector.

The drift into healthcare would not be a maiden venture for Wesfarmers. Thus, it has thought of investing in several healthcare assets over the years and sold off its underwriting business to Insurance Australia Group (ASX: IAG) back in 2013.

With the API acquisition completed, Wesfamers stock investors are undoubtedly keen to understand where the company will deploy capital over the coming years. With a trailing twelve-month cash flow of $413 million and a net profit of $2.3 billion, the company certainly has the credentials to make it happen.

At the time of writing, the Wesfarmers share price is $52.61, up by 4%.

Wesfarmers consistently outperform the Banking Sector

Since the last five years, Wesfarmers has consistently beat the big four. Wesfarmers ASX shares have returned more than 79%, whilst CBA, ANZ, NAB, and WBC lagged well behind.

Chart, line chart, histogram Description automatically generated

Source: Tradingview

Investors Also Asked These Questions:

What are the best retail stocks to invest on ASX?
Wesfarmers (ASX: WES), Jb HiFi (ASX: JBH), Harvey Norman (ASX: HVN)

Who are the core competitors of Wesfarmers?
Kogan (ASX: KGN), Harvey Norman (ASX: HVN), and Myer Holdings (ASX: MYR)

What is the best banking stock to invest in 2022?
Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Corp. (ASX: ANZ).


Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top


By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.