Kmart Australia is gearing up for a retail showdown, launching a bold new plan to take on online shopping heavyweights like Temu, Shein, Amazon and eBay, as well as new competitor Dollarama. Under fresh leadership, the Aussie favourite is setting its sights high—aiming to double its revenue and reshape the shopping experience for millions of customers across the country.
A New Era Under Fresh Leadership
Aleks Spaseska, the newly appointed Managing Director of Kmart Group, has wasted no time setting ambitious targets. She’s announced plans to grow the company’s turnover from $10 billion to $20 billion over the next decade. The retail landscape is changing fast, and Spaseska says Kmart is ready to evolve and compete harder than ever.
With traditional rivals like Big W faltering and international discount chains moving in, Kmart is under pressure to hold its ground. The takeover of The Reject Shop by Canada’s discount powerhouse Dollarama has added another layer of competition in the battle for budget-conscious Aussie shoppers.
Anko at the Core of Kmart’s Strategy
At the heart of Kmart’s comeback plan is a stronger push for its beloved private label, Anko. Known for its low prices and decent quality, Anko has become a staple in many Aussie households—from kids’ clothes to homewares and kitchen gadgets. Expanding Anko’s range will be a big focus as Kmart looks to win over shoppers looking for value without compromising on style.
But that’s not all. Kmart is also planning a major transformation of the in-store experience, aiming to make shopping more enjoyable and efficient.
Store Revamps: Beauty and Fashion Up Front
One of the biggest changes already underway is a revamp of Kmart store layouts. The new format puts fashion and beauty right at the front of stores, making it easier for customers to see the latest styles and deals as soon as they walk in.
“We’re making it easier for people to build entire outfits,” Spaseska explained to the Sydney Morning Herald. “Rather than separating tops, bottoms and dresses, we’re coordinating collections so shoppers can find everything they need in one place.”
The change is already paying off. Kmart’s Mount Gravatt store in Brisbane was the first to pilot the new design, and early results are promising. Customers are spending more per visit, especially in apparel and beauty.
With four more stores set to adopt the new layout next month, Kmart is testing whether the new format can work on a national scale. If it proves successful, every Kmart store across Australia will be redesigned in the same style.
Making Room for What Matters
As part of the layout changes, larger items like bikes and car seats will be moved off the shop floor and stored out back. Customers will still be able to purchase these items online and pick them up via click-and-collect. The move is designed to free up more space for high-demand products like clothing, beauty items, electronics and toys.
The aim is to create a more streamlined and engaging experience for in-store shoppers, while continuing to serve those who prefer to shop online.
Investing in Logistics: $200 Million Distribution Centre
To keep up with increased demand and ensure faster delivery times, Kmart is also investing heavily in its supply chain. A new $200 million distribution centre is currently being built in western Sydney, which will play a key role in improving efficiency across the country.
This massive investment shows just how serious Kmart is about staying competitive with online giants that have set a high bar for delivery speed and convenience.
Staying Strong Amid the Cost of Living Crunch
Despite the ongoing cost of living crisis, Kmart has managed to hold its ground. With affordable products like $15 rice cookers and $3 activewear, it continues to appeal to shoppers across all income levels.
Spaseska believes that Kmart’s appeal goes beyond just price. “What we can see is that Kmart is really a brand for everyone,” she told The Australian. “We’ve got very good levels of engagement across all customer demographics, and they’re spending with us.”
As the economy eventually stabilises and household budgets loosen up, Spaseska is confident that Kmart will continue to grow. She sees plenty of opportunity for the brand to attract even more shoppers who may be willing to spend more once they discover the full range on offer.
Tackling Online Giants Head-On
Temu and Shein have quickly risen to prominence in Australia, offering low prices and an endless selection of products online. But with mounting concerns about product quality, shipping times, and environmental impact, there’s an opening for trusted local retailers like Kmart to reassert their value.
By improving its physical stores, expanding product lines and investing in distribution, Kmart is positioning itself as the reliable, accessible alternative to the fast-fashion and ultra-cheap imports that dominate many online marketplaces.
Unlike its digital competitors, Kmart can offer the convenience of in-person shopping combined with a growing online presence, giving customers the best of both worlds.
The Road to $20 Billion
Hitting the $20 billion mark won’t be easy, but Spaseska and her team are confident that the groundwork being laid now will pay off in the long run. By focusing on what Aussie shoppers value—affordability, convenience, and style—Kmart is carving out a clear path forward in a competitive retail landscape.
From the local suburban store to the national logistics network, every part of the business is being rethought and reworked to meet the needs of today’s consumers.
In a world where shoppers are overwhelmed by choice, Kmart is doubling down on simplicity, quality, and consistency—offering great products at low prices and a shopping experience that Australians can trust.
Final Thoughts
As international players like Temu, Shein and Dollarama continue to expand their reach in Australia, Kmart isn’t backing down. Instead, it’s fighting back with a clear, confident strategy rooted in customer satisfaction, store innovation, and long-term growth.
If the current results are anything to go by, Kmart’s modern makeover may be just the start of a bold new chapter in Aussie retail.
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Mitchell
Mitchell is a seasoned Ph.D. scholar with extensive expertise gained through years of rigorous research, publication, and teaching experience. He brings a wealth of knowledge and analytical skills to tackle complex academic challenges. His work is dedicated to delivering innovative solutions, advancing knowledge, and promoting academic excellence. Proficient in research methodology, data analysis, and scholarly writing, Mitchell has contributed to peer-reviewed journals and mentored students to achieve academic success.
