Type Subsidiary Website Kmart.com.au Revenue 5.2 billion AUD (2016) Parent organization Wesfarmers | Industry Retail Headquarters Mulgrave, Australia Number of employees 31,000 Total assets 2.3 billion AUD (2016) | |
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Number of locations 200+ Kmart Stores (2016)
246 Kmart Tyre and Auto Area served Australia & New Zealand Key people Guy Russo (CEO of Target and Kmart)
Ian Bailey (Managing Director - Kmart) Founded 1969, Burwood East, Australia Profiles | ||
Kmart Australia Limited is an Australian chain of discount department stores (low-price stores), owned by Wesfarmers. It operates 214 stores in Australia and 14 in New Zealand, with its head office located in Mulgrave, Melbourne.
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History
Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy Limited (Coles) and S.S. Kresge Company in the United States, with Kresge owning 51% of the common stock in the company. They began to develop Kmart stores in Australia in 1968.
The first store opened in Burwood East, Victoria, in April 1969 with over 40,000 people passing through the checkouts on the first day. The doors had been closed 45 minutes after opening as a safety measure.
In 1978 Kresge exchanged its 51% stake in Kmart Australia for a 20% stake in Coles. In 1994 Coles bought back all shares held by Kresge.
A long-term licensing agreement allows Wesfarmers to use the Kmart name in Australia and New Zealand.
In 2006, Coles Group announced plans for Kmart, along with BI-LO and the Coles Group liquor brands, to be merged into the Coles brand. The first re-branded store was planned to open in 2007, with 40 stores, mostly former 'Super K' stores divided last decade into separate Coles and Kmart stores, reformed into Coles Superstores. By March 2007 the plans for these super centres were deferred pending the sale of all or part of Coles Group, and in August 2007, incoming owners Wesfarmers said super centres would almost certainly not proceed.
Kmart's performance immediately prior to the Wesfarmers takeover was poor. In May 2007, it reported a sales drop of 3.2% for the third quarter, and an overall drop in sales of 3.9% for the first three quarters.
In August 2007 Wesfarmers said it would consider selling all or part of Kmart, or converting some stores to the Target brand. Wesfarmers took control of Coles Group in November 2007 and by March 2008 had decided to retain Kmart and invest $300m in the chain over the next five years.
After continuing poor performance in 2009, the 2010 financial year saw a large increase in EBIT, reporting revenue of A$4.02 billion (equivalent to A$4.02 billion in 2017) and an EBIT of A$190 million (equivalent to A$190 million in 2017), an increase in EBIT of over 74%.
On November 15, 2012, Australia's first multi-level Kmart opened in Adelaide's Rundle Mall.
As of August 2015, Kmart has 203 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, 5 in Tasmania and 2 in the Northern Territory. There are 18 stores located in New Zealand.
Current store concepts
In 2013 Kmart began a roll-out of new store layouts. Garden plant sections were removed, and back of store areas were cut back. There was an expansion of floorspace to stock and an increase in the height of displays. The stores were given a more "Department Store" feel with front of shop checkouts replaced with an area for non-self serve customers to pay at in the centre of the store.
Former store concepts
Kmart Wishing Tree Appeal
Since 1988, Kmart and The Salvation Army have collected over five million gifts from customers, which are then distributed to those in need. The concept for the Kmart Wishing Tree Appeal 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. Over 464,000 gifts were donated to the 2010 appeal.
ANZAC Day
In February 2010 Kmart requested permission from the NSW State Government to open their stores on Anzac Day prior to the traditional 1 pm time, claiming their customers would be severely inconvenienced by their closure. The request was followed by criticism from politicians, ex-Diggers and their customers. Kmart's Managing Director Guy Russo withdrew the request in early March, apologising to the community and taking full responsibility admitting he was personally responsible.
Girl Xpress Underwear
In November 2011 Kmart sold female underwear aimed at its youth market which were considered sexually inappropriate. The underwear contained text such as: 'call me', 'email me' and 'I ♥ rich boys'. The garments were withdrawn from sale and an apology was given after they received complaints from customers.