Wesfarmers Ltd (ASX: WES) is one of Australia’s biggest employers.
With a market cap of some $60 billion, the S&P/ASX 200 Index (ASX: XJO) listed retail giant’s subsidiaries include the likes of Bunnings Warehouse, Kmart Australia, Officeworks and more.
While Wesfarmers’ corporate headquarters is located in Perth, Western Australia, the bulk of the company’s operations take place in the more populace eastern states.
In ordinary times that’s worked fine. But with the Omicron COVID variant seeing Western Australia Premier Mark McGowan delay his state’s reopening to the rest of the nation, Wesfarmers’ management has had enough.
Packing their bags
Wesfarmers’ CEO Rob Scott and his management team have been operating in the isolated city of Perth, waiting for the state border to reopen as promised.
Now that the border reopening looks to be again delayed, The Australian reports that Scott and some of his top executives “are this week preparing to relocate to the east coast for an extended period – the first time in Wesfarmers’ 108-year history this has happened”.
Scott said it’s “virtually impossible” to run a national business from Perth under the current travel restrictions.
He said his company is supportive of “a cautious and risk-based approach” to keep the pandemic in check. However, Western Australia’s delay in lifting its border restrictions “is out of step with the rest of the country, and most of the world”.
According to Scott (quoted by The Australian):
We really look forward to the WA government announcing a plan which addresses these issues in the coming weeks. The lack of consideration for national businesses and extended delays is also damaging WA’s reputation with talent.
We’ve benefited in the past from attracting some great talent to WA, with families relocating to create a life here. This is becoming increasingly difficult and is currently almost impossible, and I am concerned that this sentiment will linger.
How has Wesfarmers been performing?
Over the past 12 months the Wesfarmers’ share price is down 4.5%. That compares to a gain of 4.8% posted by the ASX 200.
So far in 2022, Wesfarmers’ shares are down 12%.
The post Wesfarmers (ASX:WES) threatens to fly the WA coop. Here’s the latest appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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