Latest news with #Wesfarmers
West Australian
3 days ago
- Business
- West Australian
Wesfarmers appoints Kmart and Target boss John Gualtieri as new Officeworks CEO
WA conglomerate Wesfarmers has switched Kmart and Target boss John Gualtieri into the top job at Officeworks, where he will succeed Sarah Hunter. Ms Hunter hands over to Mr Gualtieri in August after 15 years with the group — including the past six years at the helm of Officeworks — saying 'now is the right time for me to take on a new challenge'. As CEO of Kmart and Target, Mr Gualtieri currently reports to new Kmart Group managing director Aleks Spaseska. He joined Kmart in 2008 as the divisional merchandise manager for the home division and has held a number of senior roles in the business. In 2016, Mr Gualtieri was appointed as Kmart chief operating officer and in 2021, was promoted as CEO. Two years later, when Target was folded into Kmart, he became the CEO of both businesses. Wesfarmers managing director Rob Scott said Mr Gualtieri was a retailer with proven capabilities and experience leading large teams and delivering strong commercial outcomes. Before joining Kmart, Mr Gualtieri spent 20 years at department store Myer in various operational roles. 'John has been an outstanding leader at Kmart Group, helping drive the transformation of Kmart since he joined the business in 2008,' Mr Scott said. 'John's deep retail and commercial experience, coupled with his leadership skills, will take Officeworks into its next phase of growth. 'John joins Officeworks at an exciting time, with the business focused on strengthening its omnichannel customer experience, transforming its technology offer and scaling its business-to-business operations.' Mr Scott also acknowledged Ms Hunter's significant contribution to the group. 'For more than six years, Sarah has played a pivotal role in driving Officeworks' evolution and growth,' he said. 'Under her leadership, Officeworks has continued to grow and diversify the customer offer.' Ms Hunter was appointed to the top job in 2019. She was previously the director of the demerger program at supermarket Coles, where she oversaw its separation from Wesfarmers in 2018. 'It has been a privilege to lead Officeworks. Since 2019, we have grown revenue by over 8 per cent per annum and made good progress on our strategic agenda,' Ms Hunter said. Mr Gualtieri's appointment is the latest reshuffle for Wesfarmers. In December, it announced Ms Spaseska — then Kmart Group's chief financial officer — would take over from long-serving Kmart Group managing director Ian Bailey. Mr Bailey was credited with rescuing the brand from a near-death experience and turning its house brand Anko into an Australian retail success story. The West Australian last year revealed Anko was trialling standalone stores in the Philippines as part of the group's push into international markets. Wesfarmers shares were up 0.8 per cent to $84.06 just before 10am on Tuesday.
News.com.au
28-05-2025
- Business
- News.com.au
Kmart trialling new layout as part of plans to double sales to $20bn
Kmart is trialling a new layout of its stores as part of the discount chain's latest plans to double sales by 'luring in Gen Z and Gen Alpha shoppers' and making them 'spend more'. The Australian retail giant's new managing director, Aleks Spaseska, recently outlined her aim to grow the business' current $11.1 billion turnover to over $20 billion by focusing on younger customers and expanding its most popular ranges. Ms Spaseska, who at 41 became the youngest divisional head at the conglomerate when she was appointed in April, said the 'biggest difference' to the layout is in the apparel and beauty sections. She said the overhaul will make shopping easier for Kmart customers. '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,' she said at a recent Wesfarmers expansion strategy event, SMH reports. '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.' To make way for more clothing and beauty items on the shop floor, bulkier products such as bikes and furniture will moved to the back of the store, where customers can request and buy an item through a digital 'select and collect' screen. Brisbane's Mount Gravatt store was the first to try out the 'brand new store format' following a major refurbishment last year, but Ms Spaseska said four more stores are set to be overhauled in the coming month. If successful, all 325 Kmart stores across the country will be refigured – with early results in Mount Gravatt reportedly showing a promising start. '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,' Ms Spaseska said. understands the planned store refurbishments will aim to incorporate learnings from the trial in Mount Gravatt, and will be based on optimising return on space and improving the shopping experience. Feedback from the recent Eastland store overhaul will also be used as part of the ongoing strategic focus after it trialled moving centralised checkouts in October 2023 following years of complains. The cash registers were relocated from the centre of the Melbourne location to the exits, prompting many consumers to react with joy. 'Absolutely genius! Who would have thought?!' one user lamented. 'This is how it was all the time… never should have changed,' another scoffed. 'OMG. Revolutionary,' someone else mused. Kmart first began moving its cash registers from the entrance into the middle of stores back in 2012. By 2018, almost every store in the country had the layout, with many shoppers labelling the move 'confusing' and 'dumb'. Kmart is also opening a new $200 million distribution centre in Sydney's west that will begin operating in late 2027, the AFR reports. The 100,000 square metre venue will be used for stores and online orders for both Target and Kmart to replenish products faster, improve availability and reduce costs. Wesfarmers, which merged Target and Kmart into a dual-brand retail giant in 2023, now sells more than 1 billion of its own brand Anko items – from linen to fashion and toys – in Australia each year. Ms Spaseska recently started trialling stand-alone Anko stores in the Philippines, where it is hoping to target a growing middle-class and already has two outlets. Three more are set to open by the end of the year, and if successful, the company may roll out stores across the region, Ms Spaseska said.
Daily Mail
27-05-2025
- Business
- Daily Mail
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.'
Perth Now
26-05-2025
- Business
- Perth Now
‘I don't apologise': Bunnings boss responds
Wesfarmers chief executive Rob Scott has hit back at an ABC Four Corners documentary accusing Bunnings of pressuring suppliers, stifling competition and inflating prices, saying he 'does not apologise for trying to build a successful business'. The episode aired last week and put the beloved Australian hardware giant under scrutiny, highlighting supplier complaints and examining the chain's $19bn revenue and $3.2bn profit in 2024, figures that equate to a 16.8 per cent profit margin, nearly double that of supermarket giants Woolworths and Coles. Speaking on Sky News' Business Weekend, Mr Scott defended Bunnings' operations and rejected the suggestion that the company engaged in unfair practices. 'We pay our team members more than well above the award rates, the relationships we have with our thousands of suppliers are very strong and longstanding,' Mr Scott said. Bunnings Warehouse has been accused of stifling competition and inflating prices. NewsWire / Andrew Henshaw Credit: News Corp Australia 'Now, occasionally, businesses make mistakes and when they do make a mistake, it's important that they own it and face into it.' Mr Scott also acknowledged that Bunnings' presence in certain retail precincts could put pressure on competitors but maintained this was ultimately a benefit to customers. 'There is pressure on the competition, but at the end of the day someone has to be there for the customer, right?' he said. 'Someone has to offer great value to customers and remembering as well that I don't apologise for trying to build a successful business in Bunnings.' He added that the company was contending with major global retailers and remained focused on maintaining local jobs and opportunities. 'We are fighting tooth and nail against some very big and fierce international competitors in the retail space and we would rather that those jobs and those opportunities stay within Bunnings,' he told Sky News. Wesfarmers chief executive Rob Scott said he 'does not apologise for trying to build a successful business'. Credit: Supplied The ABC report also flagged concerns from suppliers who alleged the company marked up products significantly to boost profits, with critics claiming Bunnings' pricing strategy was misleading. In response, Bunnings said its margins weren't directly comparable with supermarkets because of the nature of its stock and slower product turnover. Bunnings' business practices are also expected to come under further scrutiny as part of a federal Senate inquiry into the market power of so-called 'big box' retailers, including Ikea and Costco. In a statement following the Four Corners broadcast, Bunnings managing director Mike Schneider said the company 'strongly rejects any suggestions made in the program that we engage in anti-competitive behaviour, bullying, underpayment of our team or that we seek to limit consumer choice or the application of our price guarantee. 'We want to reaffirm our commitment to the values that have guided our business for decades which is in direct contrast to the characterisations made by the ABC.'
News.com.au
26-05-2025
- Business
- News.com.au
‘I don't apologise': Bunnings boss responds to ABC claims
Wesfarmers chief executive Rob Scott has hit back at an ABC Four Corners documentary accusing Bunnings of pressuring suppliers, stifling competition and inflating prices, saying he 'does not apologise for trying to build a successful business'. The episode aired last week and put the beloved Australian hardware giant under scrutiny, highlighting supplier complaints and examining the chain's $19bn revenue and $3.2bn profit in 2024, figures that equate to a 16.8 per cent profit margin, nearly double that of supermarket giants Woolworths and Coles. Speaking on Sky News' Business Weekend, Mr Scott defended Bunnings' operations and rejected the suggestion that the company engaged in unfair practices. 'We pay our team members more than well above the award rates, the relationships we have with our thousands of suppliers are very strong and longstanding,' Mr Scott said. 'Now, occasionally, businesses make mistakes and when they do make a mistake, it's important that they own it and face into it.' Mr Scott also acknowledged that Bunnings' presence in certain retail precincts could put pressure on competitors but maintained this was ultimately a benefit to customers. 'There is pressure on the competition, but at the end of the day someone has to be there for the customer, right?' he said. 'Someone has to offer great value to customers and remembering as well that I don't apologise for trying to build a successful business in Bunnings.' He added that the company was contending with major global retailers and remained focused on maintaining local jobs and opportunities. 'We are fighting tooth and nail against some very big and fierce international competitors in the retail space and we would rather that those jobs and those opportunities stay within Bunnings,' he told Sky News. The ABC report also flagged concerns from suppliers who alleged the company marked up products significantly to boost profits, with critics claiming Bunnings' pricing strategy was misleading. In response, Bunnings said its margins weren't directly comparable with supermarkets because of the nature of its stock and slower product turnover. Bunnings' business practices are also expected to come under further scrutiny as part of a federal Senate inquiry into the market power of so-called 'big box' retailers, including Ikea and Costco. In a statement following the Four Corners broadcast, Bunnings managing director Mike Schneider said the company 'strongly rejects any suggestions made in the program that we engage in anti-competitive behaviour, bullying, underpayment of our team or that we seek to limit consumer choice or the application of our price guarantee. 'We want to reaffirm our commitment to the values that have guided our business for decades which is in direct contrast to the characterisations made by the ABC.'
