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Australian multinational discount department store chain owned by Wesfarmers From Wikipedia, the free encyclopedia
Kmart Australia Limited (/ˈkeɪmɑːrt/ KAY-mart, doing business as Kmart, Kmart Australia, Kmart New Zealand and Kmart Australia And New Zealand and stylised as Kmart) is an Australian chain of retail department stores owned by the Kmart Group division of Wesfarmers.
 Logo used since 2018 | |
Kmart at Stockland Rockhampton (pictured in 2022) | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded | 1969 |
| Headquarters | , |
Number of locations | 325 stores (2023) |
Area served | Australia & New Zealand |
Key people | Ian Bailey (CEO Department Stores Wesfarmers & Managing Director, Kmart) |
| Revenue |
|
| Total assets |
|
Number of employees | 40,000 (2023) |
| Parent | Wesfarmers |
| Website | kmart kmart |
The company operates 325 stores across Australia and New Zealand,[1] with its head office located in Mulgrave, Melbourne. Kmart is a member of the Kmart Group, which also comprises Target Australia. Kmart Group is a division of Wesfarmers, an Australian conglomerate.
Kmart Australia Limited was created out of a joint venture between G.J Coles & Coy Limited (Coles) and the S.S. Kresge Company, owner of Kmart USA. Kresge owned 51% of the common stock in the company and Coles owned the remaining 49%; together they began to develop Kmart stores in Australia in 1968.[2]
The first store was opened on 30 April 1969 in Burwood East, in Melbourne. On opening day it was estimated that 40,000 people passed through the checkouts, and the store took in over $97,000 (equivalent to A$1.31 million in 2024) of profit.[clarification needed] Because of the number of people that were coming through the store the doors had to be closed 45 minutes after the opening as a safety measure.[3] The store was opened by Mrs HB Cunningham, wife of the president and chairman of the S.S. Kresge Company.[4][5] The site was renovated in 2010 to be a shopping centre known as Burwood One; Kmart still operates a store at the new centre.[6]
In 1978, Kresge (since 1977 known as the "Kmart Corporation") exchanged its 51% stake in Kmart Australia for a 20% stake in G.J. Coles & Coy (later Coles Myer).[2] In November 1994, Kresge/Kmart Corporation divested its 21.5% stake in Coles Myer.[2][7]
In 1988, Kmart expanded to New Zealand with their store in Henderson, a suburb in Auckland.[8]
In 2006, Coles Group announced plans to integrate Kmart, Bi-Lo, and Coles Group liquor brands into larger format stores.[9] The first re-branded store was planned to open in 2007, and 40 stores were planned to be made into Coles Superstores, these mostly being former "Super K" stores which had been divided into separate Coles and Kmart stores a decade earlier. By March 2007, the plans for these superstores were deferred pending the sale of Coles Group to Wesfarmers.[10] In August 2007, Wesfarmers confirmed that the superstore format would not proceed.[11]
In July 2007, Wesfarmers acquired the Coles Group for A$22 billion.[12]
In August 2007, Wesfarmers said it would consider selling all or part of Kmart, or converting some stores to Target stores.[13][14] Wesfarmers took control of Coles Group in November 2007 and by March 2008 had decided to retain Kmart and invest A$300m in the chain over the next five years.[15]
After poor performance in 2009, the 2010 financial year saw a large increase in profitability, with the chain reporting revenue of A$4.02 billion (equivalent to A$5.33 billion in 2024) and an EBIT of A$190 million (equivalent to A$252 million in 2024), an increase in EBIT of over 74%.[16] This increase was achieved under the leadership of Guy Russo, a former McDonald's executive. Russo scrapped 'percentage discount' sales and well-known name brands, in favour of drastically reduced prices, a streamlined product offering, store-branded products, and on-trend pieces.[17] Kmart also rearranged its stores to eliminate traditional department divisions such as “electronics” in favour of thematic groupings such as “kitchen”, and relocated checkouts from the front of the store to the centre, a move which drew much criticism from shoppers.[18]
On 15 November 2012, Australia's first multi-level Kmart opened in Adelaide's Rundle Mall.[19][20]
By August 2015, Kmart had 214 stores trading across Australia – 52 in New South Wales and the Australian Capital Territory, 47 in Victoria, 41 in Queensland, 23 in Western Australia, 15 in South Australia, five in Tasmania and two in the Northern Territory. There were 20 stores in New Zealand.[21]. In 2015, Kmart also introduced self-checkouts, which have now been rolled out to all Kmart stores.
In August 2017, Wesfarmers purchased the use of the Kmart brand name in Australia and New Zealand for $100 million, ending a long-term licensing agreement between Coles and Sears for use of the Kmart name.[22][23]
In 2018, all Kmart stores ceased trading of DVDs, CDs, video games, televisions, video game consoles, DVD players and CD players, using the floor space in stores for more children's products and homewares.[24][25] The home entertainment department had been popular with shoppers, and the decision to scrap it was blamed for Kmart's profit slump from $415 million in 2017 to as low as $385 million in 2018.[26]
During 2020 and 2021, following falling sales and profit within the Target brand, Kmart Group converted 92 Target locations to the Kmart brand, while closing other Target stores. This included Target Country stores, which were converted to K-Hubs. [27][28][29]
In July 2023, Wesfarmers announced an internal reorganisation of Kmart and Target, with the merger of many 'back of house' processes, to create 'two brands, one business'.[30]
For fiscal year 2023–24, Kmart Australia reported A$11.107 billion in revenue, up from A$10.635 billion the year prior.[49]
Anko is Kmart Australia's house brand: an evolution of the “&Co” branding it had previously used for individual departments such as “Kids&Co”, “Home&Co” and “Clothing&Co”. Introduced in 2019 to celebrate Kmart's 50th anniversary, Anko also means “A New Kind Of”, representing the company's changed philosophy since 2008.[50] A 2024 article by The Australian reported that 85 per cent of products in Kmart stores are Anko brand. Anko has the largest market share in the home and toys, menswear, womenswear and childrenswear categories in Australia.[51]
Target began stocking Anko products in 2024.[52] Anko is also an international brand: Kmart has made arrangements to sell its products in other department stores in countries such as Thailand, Indonesia and Canada.[53] In March 2023, Zellers began stocking Anko products after obtaining exclusive distribution rights to the brand in Canada.[54] Anko products are sold online in India through Amazon and Flipkart.[55][56]
The low prices, new stylishness and fast turnover of Kmart's own-brand designs sparked an online subculture of amateur home renovators and decorators, many of whom were suburban women, who used social media to show how they were styling their Kmart purchases and incorporating them into DIY projects that became known as “Kmart hacks”, along the lines of the “IKEA hacks” online community which had existed since 2006.[57] Traditional media coverage praising particular “Kmart hacks” and other clever consumer tips by “Kmart mums” further popularised Kmart as a place to source luxury-styled products at low prices.[58][59]
On November 7, 2024, Anko opened a store in the Glorietta 2 Shopping Centre in Manilla, Philippines. The store sells homewares, storage solutions, bedding, children's toys, beauty products, fitness gear and pet essentials. Philippines Country Manager Rachel Turner stated that their range of products were 'design-led and fashion-focused', while being sold at affordable price points, with their most affordable items costing as little as ₱20 (About AU$0.50).[60]
The Kmart Wishing Tree Appeal is an annual Christmas gift appeal run by Kmart and The Salvation Army since 1988.[61] The concept first came about when Eve Mitchell, a team member from the Kmart store in Noarlunga suggested Kmart use its network of stores as gift collection points, assisting charity groups at Christmas.[62] As of the 36th appeal in 2023, the event has raised over $5.6 million and delivered 14 million gifts to those in need.[63] Target joined the appeal in 2024.
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