Bunnings accounts for 63% of earnings at Wesfarmers. While a strong business with a leading market position, Bunnings faces challenges in continuing to take market share in our view. The two major areas of share gains are in online and trade. However, in order to succeed in trade and online, Bunnings may need to spend significant capex overhauling its supply chain. At this stage, we do not expect any major shift in supply chain strategy and as a result have modest sales growth and flat margins over the next three years for Bunnings.