Latest news with #KmartGroup
Daily Telegraph
4 days ago
- Business
- Daily Telegraph
Kmart's $500m promise to customers
Kmart has committed to a new $500m fulfilment centre in Sydney's west as it aims to double revenue to $20 billion over the next decade. The retail giant has announced plans to build the new 100,000 sqm Omnichannel Fulfilment Centre to be built at ESR's Intermodal Precinct at Moorebank. The facility is expected to be operational by the end of 2027 and Kmart Group said it will create more than 1300 jobs during the construction phase of the project and when it is fully operational. The facility will also service Kmart's sister retail outlet Target and is aimed at modernising logistics and enhancing supply line growth. RELATED: Kmart set to change everything in Temu war 'This commitment is an exciting milestone and represents a significant investment in our future supply chain,' Kmart and Target CEO John Gualtieri. 'By modernising our fulfilment capabilities, we're increasing speed, efficiency and flexibility across our network. 'Ultimately, this is about delivering even more value to our customers, which is central to who we are.' Kmart have been experimenting with store layouts in a limited number of stores in Queensland in a big to increase sales and reach that $20bn target in the next 10 years, which would almost double current revenue. MORE: Price of car spot proves Australia has lost it Growth in online sales is another crucial target. 'With nearly 450 stores across Australia and New Zealand, our store network for Kmart and Target remains a core part of our customer offering,' Mr Gualtieri said. 'This new facility is key to delivering a seamless omnichannel experience, ensuring customers receive the products they need, when and how they want them. 'Whether shopping online or in-store, our goal is to provide great quality products at the lowest prices, and this facility will help us do that more efficiently than ever.' MORE: Simple tasks Aussies are freaking out over The Moorebank Intermodal Precinct is expected to deliver around $11bn in economic benefits in the three decades following completion, including $3.5bn to southwest Sydney's economy. MORE: Bizarre feature of Hemsworth's $50m Byron Bay home
News.com.au
4 days ago
- Business
- News.com.au
Kmart's $500m promise to customers
Kmart has committed to a new $500m fulfilment centre in Sydney's west as it aims to double revenue to $20 billion over the next decade. The retail giant has announced plans to build the new 100,000 sqm Omnichannel Fulfilment Centre to be built at ESR's Intermodal Precinct at Moorebank. The facility is expected to be operational by the end of 2027 and Kmart Group said it will create more than 1300 jobs during the construction phase of the project and when it is fully operational. The facility will also service Kmart's sister retail outlet Target and is aimed at modernising logistics and enhancing supply line growth. 'This commitment is an exciting milestone and represents a significant investment in our future supply chain,' Kmart and Target CEO John Gualtieri. 'By modernising our fulfilment capabilities, we're increasing speed, efficiency and flexibility across our network. 'Ultimately, this is about delivering even more value to our customers, which is central to who we are.' Kmart have been experimenting with store layouts in a limited number of stores in Queensland in a big to increase sales and reach that $20bn target in the next 10 years, which would almost double current revenue. Growth in online sales is another crucial target. 'With nearly 450 stores across Australia and New Zealand, our store network for Kmart and Target remains a core part of our customer offering,' Mr Gualtieri said. 'This new facility is key to delivering a seamless omnichannel experience, ensuring customers receive the products they need, when and how they want them. 'Whether shopping online or in-store, our goal is to provide great quality products at the lowest prices, and this facility will help us do that more efficiently than ever.' The Moorebank Intermodal Precinct is expected to deliver around $11bn in economic benefits in the three decades following completion, including $3.5bn to southwest Sydney's economy.
Daily Telegraph
5 days ago
- Business
- Daily Telegraph
Temu, Shein busted: Kmart drops major plan
Kmart has unveiled its war-footing plan as it bids to fight back against online giants Temu and Shein and Canadian upstart Dollarama in the battle for wallets of Aussie consumers. Newly installed Kmart Group Managing Director Aleks Spaseska has revealed the retail giant's aim to grow to $20 billion in turnover as it expands in the face of increasing competition from massive overseas outlets. Long-time competitor Big W is struggling but Temu and Shein have joined Amazon and eBay as chief competitors to Kmart's market share. While big money Canadian discount retail store Dollarama's take over of The Reject Shop will present even more commercial challenges. At the heart of Kmart's plan is expanding its popular cut price home brand Anko but also on completely reworking the retail experience for its millions and millions of Aussie customers. MORE: Price of car spot proves Australia has lost it Kmart have begun experimenting with new layouts in their stores, that bring clothing and beauty to the front of the outlets, aiming to maximise sales and turn younger customers into lifelong shoppers. The retail giant wants to expands it offerings in women's, men's and youth clothing ranges and beauty products, toys and electronics. 'The biggest difference you'll notice is in the apparel and beauty offer in the store,' Spaseska told 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.' MORE: Simple tasks Aussies are freaking out over Kmart's Mount Gravatt store in southern Brisbane was the first to be refurbished in the new format late last year. According to Spaseska, it is already bringing results with customers buying more items than average. Four more stores are set to follow suit next month and if that rollout is successful, every Kmart store will be refurbished in the new style. 'Those results have been stronger sales, particularly in apparel, and really pleasingly, we're seeing customers because of changes to the flow of the store, shop much more,' Spaseska said. Bigger items such as bikes and car seats will be moved off the floor room to the store rooms in stores, where customers can 'click and collect'via online, in order to make more room for clothing and beauty products. Kmart is also opening a $200m new distribution centre in Sydney's west. MORE: Bizarre feature of Hemsworth's $50m Byron Bay home Kmart has continued to do well despite the cost of living crisis, with its competitive prices on items such as $15 rice cookers. Last year Kmart beat its sales target of $10bn. Spaseska is confident Kmart will continue to do well when the economic environment improves and aims to reach $20bn in earnings over the next 10 years. 'What we can see is that Kmart is really a brand for everyone, so we've got very good levels of engagement across all customer demographics and across all levels, and they're spending with us, and we're seeing growth across all of those customer cohorts,' she told The Australian. 'The other thing I would say is, I think once customers come and they discover the product offer, the extent that they have additional disposable income in the future, there's lots of different ways to spend that, and that's what we're seeing.' MORE: Kyrgios' next big move after split from girlfriend
Yahoo
20-02-2025
- Business
- Yahoo
2.9% H1 FY25 profit rise for Kmart and Bunnings' owner, Wesfarmers
Australian conglomerate Wesfarmers has posted a net profit after tax (NPAT) of A$1.46bn ($0.927bn) for the first half (H1) of the fiscal year 2025 (FY25), reflecting a 2.9% increase from A$1.42bn in the same quarter of the previous year. Basic earnings per share (EPS) for Wesfarmers also rose 2.9%, from A$125.8 to A$129.4 in H1 FY25. For the period ending 31 December 2024, revenue was up 3.6% to A$23.49bn, compared with A$22.67bn in the same period of FY24. Wesfarmers' earnings before interest and tax (EBIT) increased 4.7% to $2.29bn, up from $2.19bn in the previous year. The company's hardware retail division, Bunnings, contributed significantly to this growth, with revenue rising 3.2% to A$10.28bn over the period. Total store sales grew 3.5%, and store-on-store sales saw a 3.4% increase. Bunnings reported a 3.2% increase in EBIT, excluding net property contributions, totalling A$1.32bn. Kmart Group, the company's department store chain, posted a 2.0% increase in revenue, totalling A$6.10bn. Kmart's comparable sales grew 1.9%. The Kmart division saw a 6.5% growth in EBIT, with earnings rising 7.2% to $644m, driven by strong performance in apparel and the successful introduction of Anko products in Target. Wesfarmers managing director Rob Scott stated: 'During the half, cost of living and cost of doing business pressures continued to significantly impact many households and businesses. In this environment, the divisions remained focused on long-term shareholder value creation, investing in even greater value, service and convenience for customers. Proactive efficiency and digitisation initiatives helped mitigate higher costs, while enabling divisions to enhance the customer experience. 'The group's largest divisions performed well, with Bunnings and Kmart Group's everyday low prices, market-leading offers and strong execution driving growth in transactions, sales and earnings. The retail divisions benefited from households prioritising value, and from new and expanded ranges and offerings that helped grow their addressable markets.' Wesfarmers also reported strong performance in the first six weeks of the second half of FY25, with Bunnings and Officeworks maintaining sales momentum. Kmart Group experienced stronger sales growth in the second half, boosted by the success of its Anko product line. "2.9% H1 FY25 profit rise for Kmart and Bunnings' owner, Wesfarmers" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
