Kmart Aims to Double Sales with Global Push

Kmart is aiming for a major leap in sales, targeting $20 billion annually within a decade, as it focuses on younger shoppers and builds its own-brand Anko into an international retail force, but the expansion could test resource limits and pricing flexibility.

The discount department store chain, part of conglomerate Wesfarmers, has consistently outperformed expectations, recently surpassing $10 billion in revenue. With the Anko brand now driving 85% of Kmart’s sales and selling over a billion items yearly, the company sees enormous growth potential, especially in booming product lines like homewares, beauty and on-trend fashion.

To reach its ambitious goals, Kmart is experimenting with stand-alone Anko stores in the Philippines and expanding partnerships with retailers like Walmart Canada and European supermarket Action. Domestically, the business is also adapting store formats to better appeal to under-30 consumers and doubling down on digital tools such as its app, which has grown to over 1.3 million monthly users. A new $200 million distribution hub in Western Sydney is set to open by 2027, increasing delivery speed and reducing costs.

While the growth plan seems promising, international retail expansion is often unpredictable. Kmart’s methodical market testing approach and ongoing tech integration look like smart moves, but global rollouts can quickly become expensive if consumer demand doesn’t match expectations. Still, analysts believe innovations such as curated product displays and click-and-collect options may keep Kmart ahead in the competitive discount retail space.

Wesfarmers, which also owns Bunnings, Officeworks and Priceline, continues to bank on Anko as a key growth driver. The group is also betting on beauty, with a new Atomica concept store being tested to compete in the thriving skincare and cosmetics market. The diversified approach suggests Wesfarmers is preparing for long-term resilience, even as economic conditions and consumer confidence remain in flux.

Source: Australian Financial Review, NRF, Latterly, Ragtrader