Kmart Australia

This article is about the Australian retailer and flagship brand of Wesfarmers' Kmart Group. For other uses, see Kmart (disambiguation).

Kmart Australia Limited
Company typeSubsidiary
IndustryRetail
Founded1969 (1969)[1]
HeadquartersMulgrave, Victoria, Australia
Number of locations
323 (Australia and New Zealand)[2] (2026)
Area served
Key people
Aleksandra Spaseska (Managing Director, Kmart Group)
BrandsAnko[3]
Revenue A$11.429 billion (FY2025)[a][3]
A$1.046 billion (FY2025)[a][3]
Number of employees
c. 38,000 (Australia, New Zealand and key sourcing markets)[2] (2026)
ParentWesfarmers
Websitekmart.com.au
kmart.co.nz
anko.com

Kmart Australia Limited (/ˈkeɪmɑːrt/ KAY-mart), trading as Kmart, is an Australian chain of discount department stores owned by the Kmart Group division of Wesfarmers. Kmart operates stores in Australia and New Zealand and is part of the Kmart Group alongside Target Australia.[2]

Kmart was established in 1969 with the opening of its first store at Burwood East, Victoria.[1][4] In the 2010s, the chain undertook a major merchandising and store-layout redesign under Wesfarmers, expanding the role of private-label products (including its dominant house brand Anko) and increasing emphasis on everyday low pricing.[5]

History

1968–1977: Establishment and early expansion

Kmart Australia was formed as a joint venture between G.J. Coles & Coy Limited (Coles) and the S.S. Kresge Company (later Kmart Corporation). Kresge held 51% of the common stock and Coles held 49%.[6]

The first Australian store opened on 30 April 1969 at Burwood East in Melbourne, originally designated "Coles Burwood Store No. 1".[1][7] The site was later redeveloped as the Burwood One shopping centre, where Kmart remains a tenant.[8]

Early Kmart stores operated as large-format discount department stores, and some openings were combined discount department store and supermarket locations. This reflected Coles' strategy of co-locating general merchandise and grocery retailing, with early stores stocking over 40,000 items.[9][10] 

During this period, the company introduced Kmart Food, a supermarket format developed adjacent to, or integrated with, the discount department stores. By June 1975 there were 21 Kmart Food supermarkets in operation.[11] The standalone grocery branding was short-lived, and the supermarkets were integrated into the broader corporate grocery strategy, rebranding as Coles New World supermarkets during the 1976 financial year.[12]

1978–1994: Coles ownership, New Zealand expansion and “Super Kmart”

In 1978, Kresge (from 1977, Kmart Corporation) exchanged its 51% stake in Kmart Australia for a 20% stake in G.J. Coles & Coy (later Coles Myer).[6] In November 1994, Kmart Corporation divested its 21.5% stake in Coles Myer, leaving the business entirely under Australian ownership.[6][13] The brand expanded internationally in 1988, opening its first New Zealand store in Henderson, Auckland.[14]

During the 1980s, Coles developed the Super Kmart hypermarket format, combining a Kmart discount department store with a supermarket under one roof.[15][16][17] Despite reaching 34 locations by 1989, the hypermarket concept was discontinued by 1990 due to duplicate administration costs and lower sales results, with most locations physically split into separate Kmart and supermarket tenancies.[18] The company also trialled ColMart in 1984, a joint Coles New World supermarket and variety store located in Whyalla, South Australia.[19]

Many Kmart stores operated an in-store diner known as Holly's Restaurant during the 1980s and 1990s. As the company shifted focus to maximise retail floor space, the restaurants were progressively closed down, with the final location closing in 2010.[20]

1995–2006: Coles Myer era and further diversification

By the mid-1990s, Kmart continued to expand and refurbish stores within the Coles Myer group, including a high-profile opening at Chadstone in 1995.[21] In November 1996, following the deregulation of shopping hours in Victoria, Kmart pioneered 24-hour, 7-day-a-week trading, starting with its original Burwood store.[22]

In 1999, the company launched the Kmart Garden Supercentre, a standalone warehouse format specialising in outdoor living and plants. Six nurseries operated across the eastern states until 2007, when they were gradually divested, with several rebranded as Flower Power Garden Centre.[23] Kmart also trialled a standalone fast-fashion store concept called Girl Xpress in the mid-2000s. The dedicated storefronts were discontinued, but the brand was retained as an exclusive in-house Kmart label.[24] Another retail trial included the Kmart Clearance Centre at Ringwood in 2006.

Kmart Tyre and Auto Service expanded significantly during this period. Operating automotive service centres often co-located with Kmart stores, the network absorbed 91 new auto stores (including former Shell Autoserv sites) in 2006, expanding the footprint to 275 locations.[25] 

In September 2006, the newly renamed Coles Group announced plans to integrate Kmart, Bi-Lo, and liquor brands into larger-format superstores.[26] However, by March 2007, the superstore plan was deferred pending the imminent sale of the company.[27]

2007–present: Wesfarmers ownership and modernisation

In July 2007, Wesfarmers announced it would acquire Coles Group for A$22 billion.[28] During the 2007 sale process, Woolworths Limited proposed acquiring Kmart and Officeworks, but the Australian Competition and Consumer Commission opposed the proposal.[29] Following the takeover, Wesfarmers considered selling Kmart or converting stores to Target, but ultimately decided to retain and invest in the chain, committing A$300 million over five years.[30][31]

Under the leadership of Guy Russo, who was appointed managing director in 2008, Kmart altered its retail strategy. The retailer shifted away from percentage sales and third-party brands, focusing instead on everyday low pricing and private-label merchandise.[32][33] Kmart Photos transitioned from Kodak to an HP platform in 2009, before returning to Kodak minilabs in 2014.[34] Store layouts were redesigned to consolidate merchandise into lifestyle groupings, with checkouts relocated to the centre of many stores.[5][35]

In August 2017, Wesfarmers purchased the perpetual rights to use the Kmart brand in Australia and New Zealand for A$100 million, permanently severing licensing ties with the American Kmart corporation.[36] In 2018, Kmart phased out DVDs, CDs, and related home entertainment hardware to reallocate floor space to homewares and children's products.[37] Also in 2018, Wesfarmers sold Kmart Tyre and Auto Service to Continental AG for A$350 million; the centres were rebranded as MyCar in 2019.[38]

During 2020 and 2021, Wesfarmers converted 92 Target locations to Kmart. This strategy introduced the smaller-format K Hub stores, primarily replacing Target Country locations in regional communities to offer a curated Kmart range and click-and-collect services.[39][40] The integration deepened in July 2023 when Wesfarmers announced the merger of Kmart and Target's back-of-house functions under a “two brands, one business” model.[41]

Operations and current formats

Kmart stores stock merchandise across broad categories including home (for example: kitchenware, bedding, storage, small appliances, lighting, hardware and seasonal products), clothing (apparel, footwear and cosmetics) and kids (toys, children's apparel and related goods).[5] 

Several stores have regular trading hours of 8:00 am to midnight, with a further handful of locations in New South Wales, Victoria and Tasmania operating continuously 24 hours a day, closing only for selected public holidays or exceptional events.[42] Kmart had originally pioneered this 24/7 trading model 30 years ago in 1996.[22] Alongside standard Kmart stores, the brand also operates the K Hub model in regional locations.[43]

Wesfarmers reports Kmart Group’s digital sales and app usage as part of its segment reporting. In FY2025, Wesfarmers reported monthly active app users of more than 1.3 million and continued investment in supply chain and omnichannel capability.[3]

Anko

Anko is Kmart Australia's house brand. It was introduced as an umbrella brand in 2019 (building on earlier “&Co” sub-brands) and is used across a large share of Kmart’s product range.[44] Wesfarmers reports on “Anko Global” expansion initiatives separately within Kmart Group disclosures; in FY2025, Wesfarmers reported two Anko stores had opened in the Philippines and that Anko Global revenue and earnings were immaterial to Kmart Group results.[3]

In the Philippines, Anko (as a standalone retail brand) opened its first store at Glorietta 2 (Makati) in November 2024 and a second store at Alabang Town Center in May 2025; BusinessWorld reported a third store opened at TriNoma in July 2025.[45][46][47] Anko’s loyalty program (Anko Club) is delivered via an app-based membership and has been promoted as offering access to events and activations.[48]

Anko products have also been distributed internationally through retail partnerships, including Canada (via Zellers/Hudson’s Bay) and India via online marketplaces.[49][50][51]

Media coverage of Kmart’s private-label and low-price homewares has contributed to an online “Kmart hacks” subculture in Australia, where customers share DIY projects using Kmart products.[5][52]

Kmart Wishing Tree Appeal

The Kmart Wishing Tree Appeal is an annual Christmas gift appeal run by Kmart and The Salvation Army since 1988.[53] The appeal originated from a proposal by a Kmart staff member at the Noarlunga store in South Australia to use stores as gift collection points for charitable distribution.[54] By 2022, the organisers reported the appeal had delivered 10 million gifts and raised more than A$5.6 million.[55]

See also

Notes

  1. ^ a b Wesfarmers reports financial results for the Kmart Group segment (Kmart and Target combined).

References

  1. ^ a b c "Kmart Australia's first discount department store grand opening". State Library Victoria. Retrieved 24 February 2026.
  2. ^ a b c "Kmart Group". Wesfarmers. Retrieved 24 February 2026.
  3. ^ a b c d e "2025 Full-year results" (PDF). Wesfarmers (ASX announcement). 28 August 2025. Retrieved 24 February 2026.
  4. ^ "Hundreds of bargain-hunters queue to shop in K-Mart". The Age. 1 May 1969. p. 13. Archived from the original on 7 December 2021. Retrieved 19 April 2010.
  5. ^ a b c d Powell, Dominic (7 February 2020). "How Kmart became the 'cool mum' of Australia's discount retailers". The Sydney Morning Herald. Archived from the original on 21 July 2020. Retrieved 24 February 2026.
  6. ^ a b c "Sears Holdings: Kmart Timeline (US)". Archived from the original on 29 September 2011. Retrieved 18 August 2011.
  7. ^ "View of Kmart and carpark of Coles Burwood Store No. 1". State Library Victoria. Retrieved 24 February 2026.
  8. ^ Hopkins, Philip (20 October 2010). "Kmart's first home gets special treatment". The Age. ProQuest 759084586.
  9. ^ "Kmart discount department store and supermarket grand opening New Town Wednesday October 31". State Library Victoria. Retrieved 24 February 2026.
  10. ^ "Interior of Kmart store … stocks more than 40,000 items of merchandise to meet every need". State Library Victoria. Retrieved 24 February 2026.
  11. ^ G.J. Coles & Co. Limited Annual Report 1975. G.J. Coles & Co. Limited. 1975.
  12. ^ G.J. Coles & Co. Limited Annual Report 1976. G.J. Coles & Co. Limited. 1976.
  13. ^ "21.5% Stake in Coles Myer of Australia Is Ended". The New York Times. 5 November 1994. Archived from the original on 23 January 2018. Retrieved 22 January 2018.
  14. ^ "Kmart celebrates 20 years in New Zealand". Scoop. 14 October 2008. Archived from the original on 22 January 2018. Retrieved 22 January 2018.
  15. ^ G.J. Coles & Co. Limited Annual Report 1983. G.J. Coles & Co. Limited. 1983.
  16. ^ "Grand opening Super Kmart Werribee Plaza be there Tuesday October 1..." State Library Victoria. Retrieved 24 February 2026.
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  19. ^ "Whyalla News". Victor Harbour Times. 4 April 1984.
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  21. ^ "Amaaaazing incredible opening specials Kmart Chadstone". State Library Victoria. Retrieved 24 February 2026.
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  26. ^ "Strategy Update: Driving Value for our Shareholders" (PDF). Coles Group (news release). 21 September 2006. Archived from the original (PDF) on 2 September 2007. Retrieved 9 August 2007.
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  28. ^ "Coles sold for $22 billion". 2 July 2007. Archived from the original on 6 July 2007.
  29. ^ "Public Competition Assessment: Woolworths Limited – proposed acquisition of Kmart and Officeworks from Coles Group Limited" (PDF). Australian Competition and Consumer Commission. 17 October 2007. Retrieved 24 February 2026.
  30. ^ "Wesfarmers plans Coles investment, restructuring". Reuters. 16 August 2007. Archived from the original on 8 January 2016. Retrieved 8 September 2011.
  31. ^ "Wesfarmers puts $300m into Kmart". The Age. 20 March 2008. Archived from the original on 7 November 2012. Retrieved 8 September 2011.
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  33. ^ "Wesfarmers 2010 Full Year Report" (PDF). Archived (PDF) from the original on 20 March 2012. Retrieved 12 August 2011.
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  35. ^ McCauley, Dana (2 September 2017). "Kmart's new store layout is driving people crazy". News.com.au. Retrieved 26 March 2023.
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  40. ^ "Which Target stores are closing, rebranding as Kmart?". 9News. 25 May 2020. Retrieved 13 October 2021.
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  42. ^ "WA's first 24-hour department store opens". ABC News. 26 November 2014. Retrieved 25 January 2022.
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  44. ^ Paine, Hannah (19 January 2021). "Kmart Australia shoppers stunned by meaning behind Anko brand". News.com.au. Retrieved 26 March 2023.
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  46. ^ "Anko opens second store, launches membership app". BusinessWorld Online. 12 May 2025. Retrieved 24 February 2026.
  47. ^ "Anko opens biggest PHL store so far in TriNoma". BusinessWorld Online. 14 July 2025. Retrieved 24 February 2026.
  48. ^ "Anko club". Anko. Retrieved 24 February 2026.
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  52. ^ Boyd, Rebecca (9 August 2019). "Our 15 best Kmart hacks to try this weekend". Better Homes and Gardens. Retrieved 26 March 2023.
  53. ^ "Salvation Army – Kmart Wishing Tree Appeal". Archived from the original on 28 September 2011. Retrieved 1 August 2011.
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