Kmart sales booming during cost of living crisis

Friday, 25 August 2023

Business is booming at Kmart as shoppers flock to the discount department store in search of relief from rising prices.

Kmart Group, owned by Australian retail giant Wesfarmers, on Friday reported annual revenue of AU$10.6 billion (NZ$11.5b), up 16.5%, and earnings of $769 million, up 52.3%.

The group’s strong performance helped lift Wesfarmers’ overall revenue by 18.2% to $43.6 billion and its profits to $2.47b, up 4.8%.

Wesfarmers chief executive Rob Scott said the cost of living crisis had boosted traffic to Kmart, both online and in-store.

“As people become more value conscious, and also as the quality of products improves, we’re attracting a lot of new shoppers,” he told the Sydney Morning Herald.

While Kmart’s low-cost homewares had earned the brand a cult following, customers had been branching out to spend in other areas at the retailer. Scott said.

“We have materially improved the quality of fashion and apparel category, [and] now people are increasingly buying their clothes at Kmart, whereas previously they may have been only buying home products.”

Sales of activewear, exercise equipment and beauty products had also experienced solid growth.

Kmart has more than 300 stores across Australia and New Zealand. Its Manukau store is New Zealand’s largest 24-hour Kmart and has a trading floor covering almost 5000m².

Other brands in the Wesfarmers stable include Target, Bunnings and Officeworks.