Wesfarmers is working with Microsoft to develop AI agents that improve demand forecasting and inventory management across its retail businesses, with the potential to deliver meaningful productivity benefits over time.
In early 2026, the Group identified a set of priority use cases through cross-divisional collaboration, bringing together supply chain, technology and data teams. Initial focus is on a forecasting tool being developed with Kmart as the lead division, designed to identify demand changes and support more informed planning decisions.
Early estimates indicate the potential to improve forecast accuracy and reduce markdown exposure, with value to be confirmed as implementation progresses. Additional use cases targeting excess inventory and supply chain visibility are also in discussion.
The approach follows a “solve once, accelerate everywhere” model, with solutions developed in one division intended to be scaled across the business. This work reflects the Group’s focus on improving decision-making and operational efficiency, while maintaining appropriate human oversight and a clear link to commercial outcomes.