Inside Kmart’s new store layout designed to get Gen Z to spend more

Kmart will also lean harder into social media and online engagement, which is already high, with several Facebook groups and users on TikTok showcasing their affordable purchases. The retailer will focus on expanding its range of cleaning items, household accessories and appliances such as hair curlers.

The longer-term target is to double the size of Kmart’s business, which Spaseska described as a “really big, bold” goal to achieve in “more than five [years], less than 10”.

Kmart raked in $11.1 billion in sales and profits of nearly $960 million in the 2024 financial year and is the powerhouse of parent company Wesfarmers, a $94 billion giant, which also owns Bunnings, Officeworks, Target, Priceline and more.

“One of the things I’m always conscious to say is, it’s not a forecast, it’s not a business plan. It is an aspiration,” said the new managing director.

“It galvanises the team, first of all, around what we are aspiring to. The second thing it does, I think, is it provides a focal point for how big do the moves we make need to be. ”

New boss bats away dupe accusations

In-house brand Anko is the driving force behind Kmart’s success, representing 85 per cent of the chain’s overall sales. Products are developed by in-house designers and buyers and produced in Kmart’s factories in Bangladesh, Indonesia and China.

Loading

“Our unique model, from product design through to sourcing through to store, means we can take those growing categories, those trending products, and we can bring them to market at a fraction of the cost of what anyone can, so we’re making those products accessible to a much larger customer base than ever before, and that’s really where we see the opportunity,” Spaseska said.

However, some Australian designers have accused Kmart of copying their product, such as kitchen gadget design firm Dreamfarm, based in Brisbane, which created a folding citrus juicer that won Oprah Winfrey’s approval and was named one of Time magazine’s best inventions in 2023. Temu sold a replica of the item, but later removed it.

Spaseska said Kmart invested significantly in its design and buying team.

“Global trends are global trends that are picked up by our suppliers, picked up by retailers globally. We’re constantly led by what a consumer is looking for, and how can we interpret those things with a unique Kmart slant and produce the unique products that we do at the price points that we do.

“It’s something we invest in really materially.”

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.