The enormous shake-up coming to your next Bunnings visit

Wesfarmers (ASX: WES) subsidiary Bunnings is making a bold play with the launch of Hammer Media, as it steps into Australia's $1.6 billion retail media market. But will this fuel growth or turn into a costly misstep that drags Wesfarmers share price down?

To understand the opportunity, retail media is already a goldmine. Woolworths' Cartology and Coles360 are pulling in hundreds of millions, while Amazon's $73.5 billion ad business proves just how lucrative this space can be.

Now, Wesfarmers wants in, promising advertisers laser-focused targeting through in-store screens, shelf displays, and online channels. With 30 million monthly website visits and massive foot traffic, the potential upside is undeniable.

However, breaking into this space won't be easy. The model pressures suppliers to shift budgets away from traditional advertising to retailer-owned platforms-something that could strain relationships, especially with smaller brands. Any missteps could dent Wesfarmers' reputation and profitability.

On the stock front, Wesfarmers has been a powerhouse, with its share price nearly doubling from its 2022 lows and surging 165% since the 2020 pandemic crash, reaching fresh all-time highs in February this year.

However, since February 25, sellers have taken control, driving the stock down to the key $70 support level-a price buyers have vigorously defended since August last year.

Despite six failed attempts to break below this level, history suggests that if buyers step up again, Wesfarmers could make another run at its all-time high. But if $70 fails to hold, the next major support to watch is $60.

Ultimately, Hammer Media is a bold statement of Wesfarmers' intent to innovate. If they execute well, this could redefine the company's future. If they fumble, it could be a costly distraction. Either way, this bet is just getting started and investors should be watching closely.

What are the best and worst-performing sectors this week? 

The best performing sectors include Financials up more than 2%, followed by Energy, up more than 1% and Consumer Discretionary, up just under half a per cent.

The worst performing sectors include Information Technology, down more than 1%, followed by Consumer Staples and Real Estate, down just under 1%.

The best performing stocks in the ASX top 100 include Mineral Resources, up more than 8%, followed by Qantas Airways and Fisher & Paykel Healthcare, both up over 4%.

The worst performing stocks include James Hardie Industries, down more than 17%, followed by Paladin Energy, down more than 13% and NEXTDC Limited, down more than 7%.

What's next for the Australian stock market? 

Buyers maintained their dominance this week, pushing the All-Ordinaries Index up nearly 1%, breaking through the crucial 8200 resistance level.

With this move, the market has now recaptured a third of its recent 10% decline and while the recovery remains modest, it highlights strong buying momentum and a clear demand for quality stocks that were previously oversold.

Leading the charge were Financials and Energy stocks, with Consumer Discretionary close behind. This sector rotation points to growing consumer confidence, even as the federal budget failed to generate much excitement. Meanwhile, concerns over tariffs seem to have faded.

The recent 25% tariff on imported US vehicles barely registered in the market, with investors instead focusing on Australia's strong fundamentals, low debt levels, and high-demand exports.

Adding to the bullish sentiment, we're entering April-historically the second-best month for gains on the All Ordinaries Index.

Over the past 40 years, April has delivered an average return of 2.5%, far outpacing the typical 1% gain in other positive months outside of July. So, with buyers clearly in control and seasonal tailwinds at play, the market could be gearing up for a powerful run.

Building on this momentum, there are still quality stocks trading at a discount, but the window of opportunity won't stay open for long. If this rally gains momentum, we could be looking at a retest of the all-time high sooner than expected.

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