Back to the future: Kmart returning checkouts to exits
Two dozen more Kmarts will be revamped with a new format where tills will be moved to store entrances, and the group is also trialling a new concept store for homewares.
Kmart Group chief executive Aleksandra Spaseska told analysts on Wednesday that 16 of around 300 Kmarts in Australia have already been converted to the “Plan C+” format, which includes entry and exit doors and relocated cash registers.
“This offers better space allocation, better visual display and an enhanced beauty experience,” Ms. Spaseska said.
This format also results in higher sales as cross-shopping between departments increases and shoppers buy more items per cart, he said.
As a result, Kmart Group is increasing its investment in its transformation program and expects 40 stores to operate in the new format by the end of 2026/27.
Kmart moved its cash registers to the middle of stores from 2012 to 2015, a move that drew strong backlash from customers.
The Wesfarmers-run retailer will open a new “K Home” concept store, trialled as an independent home and furniture destination, in the east Melbourne suburb of Box Hill next week.
“This is designed to test whether we can unlock a greater home opportunity through a more immersive format that showcases the breadth of the Anko product range in a way that not all of our stores can,” Ms. Spaseska said.
The store features specially crafted displays, room-based inspiration and a more immersive home environment, as well as online-only products due to space constraints in traditional Kmart stores.
“We will use the trial to learn quickly, improve the model and evaluate long-term opportunities,” Ms. Spaseska said.
Kmart’s 10-hectare automated customer satisfaction center in the western Sydney suburb of Moorebank was on time and on budget and will make the group’s supply chain more resilient, efficient and scalable when it opens in 2027/28, he said.
The retailer’s online marketplace, which launched in May 2025, currently features 130,000 products from 90 sellers.
Kmart has also expanded the offering of RFID tags to cover most of the clothing it sells to provide better self-usability and inventory integrity.
Ms. Spaseska said in the past few months, customers have become more selective and value-conscious and are buying fewer items.
“We can see from all our customer data that households are more focused on the cost of living,” he said.
“It’s the number one thing on their mind, and it’s really critical to think about how to make their household budget work and find more value.”
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