Wesfarmers' growth prospects are under a cloud after new chief executive Rob Scott slashed the value of Bunnings UK and Ireland by $1 billion and launched a review which could see the conglomerate walk away from its first major overseas expansion.

Argo Investments managing director Jason Beddow said losses and writedowns at Bunnings' two-year-old home improvement business in the UK could dent Wesfarmers' appetite for acquisitions, especially offshore, forcing the conglomerate to focus on the low-growth Australian market.