Inside Kmart Australia's brand new store layout - as boss announces major changes in the works
Kmart Australia has announced major changes to its store layout as part of a strategy to attract digitally savvy Gen Z and Alpha customers.
The retailer is trialling new store formats in select locations, including moving the checkouts - controversially placed in the centre of the store - back to the front.
The central checkout layout was first introduced to all stores across the country about a decade ago to 'improve access' and 'reduce clutter at the exit'.
Now in a significant move, Kmart's new managing director Aleks Spaseska revealed plans to highlight fashion and beauty at the front of stores in a bid to boost sales and better appeal to younger shoppers.
'The biggest difference you'll notice is in the apparel and beauty offer in the store,' Spaseska said at the Wesfarmers strategy briefing day, according to the SMH.
'If you go into women's apparel today, you'll see we mostly sell all the tops together, the bottoms together, the dresses together. If you think about the way our merchants put the ranges together, it's a brand-new outfit.
'When you walk the store in the new format, there's much more co-ordination through women's apparel, which allows customers to be much more inspired and helps with outfit building... We've also brought beauty to the front of the store as well.'
Daily Mail Australia visited the Kmart store in Ashfield, in Sydney's Inner West, where controversial checkouts were recently reinstated near the front entrance.
Upon entering, customers are greeted by rows of beauty essentials, including budget-friendly makeup and skincare products.
The retail chain plans to move its bulkier items - such as car seats and bikes - from the shop floor to the back of the store to free up space for clothing displays.
As part of the change, customers will be directed to purchase bulky or big ticket items through a digital 'select and collect' system.
Typically known as the go-to spot for mums and millennials, the retailer is now setting its sights on Gen Z and Alpha consumers as it expands its offering in youth apparel, 'kidult' collectibles, beauty, and home and living.
In an effort to appeal to younger customers, Kmart is shifting its marketing strategy toward social media.
The younger customers have become key drivers of market trends, with their purchasing power growing rapidly - likely fuelled by social media, influencers and online shopping.
The retailer's strategy will include creating more social media content to showcase popular low-cost items, including fashion, beauty, homewares, cleaning and more.
In recent years, Kmart has drawn tens of thousands of shoppers to its stores - all thanks to organic social media buzz and five-star reviews.
In the 2024 financial year, Kmart Group reported a revenue of more than $11billion dollars, with profits of nearly $960million.
Kmart Australia has announced major changes to its store layout as part of a strategy to attract digitally savvy Gen Z and Alpha customers
The Mount Gravatt store in southern Brisbane was among the first to undergo refurbishment late last year.
The new store layout has led to increased customer traffic, with Spaseska confirming it has been a huge success, citing 'stronger sales' driven by the improved store flow.
Four more stores are expected to roll out the new layout, and if successful, the format will be expanded across all Kmart locations.
'I'm incredibly proud of what our team has achieved so far,' Spaseska said.
'Our purpose to make everyday living brighter has never mattered more to customers, and I look forward to this next chapter in our story.'
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