Wesfarmers boss Rob Scott expects key retail brands Bunnings and Kmart Group to be weather any downturn as households budgets come under pressure from rising interest rates this year because customers will tackle more do-it-yourself projects and search for better deals at the discount stores chain.

The WA-based conglomerate was confident enough about its long-term prospects to increase its final dividend despite a slight fall in group profits in the 2022 fiscal year to $2.35 billion.