Retail Giant Targets Doubling Turnover
Kmart has launched a bold expansion strategy as it responds to rising competition from global online and discount retailers. The company plans to grow its annual turnover to $20 billion over the next decade, doubling last year’s $10 billion result. New Kmart Group Managing Director Aleks Spaseska revealed the strategy in response to surging rivals Temu, Shein, Amazon, and eBay. The acquisition of The Reject Shop by Canadian discount giant Dollarama has added fresh pressure on Australian retailers.
Kmart
Kmart Revamps Store Experience Nationwide
Kmart is overhauling its store layout and customer experience as part of its new retail plan. The company is trialling a new format that puts clothing and beauty at the front of stores to boost sales. “We’ve also brought beauty to the front of the store as well,” Spaseska told the Sydney Morning Herald. She said the biggest change will be seen in how apparel is presented to shoppers. “If you go into women’s apparel today, you’ll see we mostly sell all the tops together, the bottoms together, the dresses together.” “When you walk the store in the new format, there’s much more co-ordination through women’s apparel,” she said. “That allows customers to be much more inspired and helps with outfit building.”
Kmart’s new store layout
Mount Gravatt Store Delivers Early Results
The first test site for the layout was Kmart’s Mount Gravatt store in Brisbane, refurbished late last year. According to Spaseska, the new layout is already delivering stronger sales, particularly in apparel categories. Customers are buying more items on average, a trend the company attributes to better product placement and flow. Four more stores will be refurbished next month based on the new design strategy. If those perform well, the company plans to roll out the format across its national store network.
Bigger Items Moved to Backrooms
Larger products such as bikes and car seats will be moved off the shop floor to storage areas. These items will remain available through online ordering and in-store collection, freeing up space for higher-demand products. The move aims to focus retail space on categories like beauty, youth clothing, and electronics.
Anko Range Drives Private Label Focus
At the heart of Kmart’s product strategy is its popular private label brand Anko. The company aims to further expand Anko’s footprint across homewares, apparel, beauty, toys, and electronics. Anko’s competitive pricing continues to attract budget-conscious consumers during ongoing cost of living pressures.
New $200 Million Distribution Hub in Sydney
Kmart is building a $200 million distribution centre in western Sydney to support future expansion. The facility will enhance logistics and supply chain efficiency as store sales and online orders increase.
Aussie Consumers Still Spending Despite Cost Pressures
Despite inflation and economic uncertainty, Kmart continues to attract strong consumer spending. Items like $15 rice cookers and low-priced electronics remain popular across a wide customer base. Spaseska said, “Kmart is really a brand for everyone. We’ve got very good levels of engagement across all customer demographics.” She added that all customer segments are contributing to sales growth, regardless of income level.
Plans Align with Long-Term Economic Optimism
Spaseska remains confident Kmart will continue to grow as economic conditions improve over time. She said customers discovering new product ranges will spend more when they regain disposable income. “I think once customers come and they discover the product offer… there’s lots of different ways to spend that,” she said.
Aleks Spaseska, Managing Director of Kmart Group
Kmart Responds to Global Market Disruption
The company’s strategy directly responds to new competition from global e-commerce platforms and foreign discount chains. Temu and Shein have gained market share quickly in Australia with aggressive pricing and fast online delivery. Dollarama’s move into the local market via The Reject Shop acquisition presents another significant retail threat.
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In-Store Changes Aim to Win Younger Shoppers
Kmart’s new store design focuses on building loyalty with younger consumers through improved fashion and beauty offerings. The retail overhaul also intends to turn casual visitors into repeat customers by improving shopping experience. The company believes combining product value with presentation will be key to retaining market leadership.
Retail Transformation to Define Next Decade
With new leadership, Kmart is positioning itself for the next phase of growth across Australia’s evolving retail landscape. Its renewed focus on private labels, updated store formats, and expanded distribution aims to drive long-term success. The retail group expects to finalise national rollout decisions following the results from the next wave of store refurbishments.
