👉 Background: Wesfamers is the WA-based owner of some of the biggest-name brands in Australian retail. We're talking Bunnings, Kmart, Target, Officeworks, Pricelines, Silk Laser Clinics. It was also the owner of Catch, which it announced plans to shut down last month. But other than retail, it also owns Kleenheat, Blackwoods and other industrial and safety businesses.

‍👉 What happened: Wesfarmers has announced its sales for the last half year jumped by 3.6% to over $23.5 billion. And off the back of these sales, it delivered a tasty net profit of $1.47 billion…enough to buy every single Kmart dupe and still have change left for a Bunnings snag.

‍👉 What else: Bunnings did the heavy lifting and saw major demand for garden and power tools. And obviously Kmart also performed strongly with its earnings double market expectations. And, Wesfarmers reckon a key part of this success is its pricing strategy of everyday low prices.

What's the key learning?

💡Consistency builds trust, while discounts create urgency. Bunnings and Kmart primarily use a pricing strategy called Everyday Low Price which is consistently offering products at the lowest prices.

💡This means they don’t rely on frequent promotions or discounts versus the  'High-Low Pricing’ strategy. This is when companies set higher prices but offer discounts and promotion. Historically, more than 40% of groceries are purchased on special or promotion each week - according to Nielsen.

💡While high-low pricing attracts deal hunters, it also means shoppers aren’t particularly loyal so, they’ll happily ditch Coles for Woolies if butter is 50c cheaper. Whereas every day low pricing means there is the predictability of prices, which is clearly working for Wesfarmers.