Kmart Australia
Encyclopedia
Kmart Australia Limited is a discount department store
Discount store
A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances...

 chain owned by Wesfarmers
Wesfarmers
Wesfarmers Limited is one of Australia’s largest public companies and one of Australia's largest retailers. Its headquarters are in Perth, Western Australia....

. It operates 172 stores in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 and 15 in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

, with its head office located in Mulgrave, Victoria
Mulgrave, Victoria
Mulgrave is a suburb in Melbourne, Victoria, Australia, 21 km south-east from Melbourne's central business district. Its Local Government Area is the City of Monash. At the 2006 Census, Mulgrave had a population of 16,280....

. Wesfarmers uses the Kmart name under licence from Sears Holdings Corporation
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

.

History

Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy Limited
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...

 (Coles) and S.S. Kresge Company
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

 in the US, with Kresge owning 51% of the common stock in the company. They began organising to develop Kmart stores in Australia in 1968.

The first store opened in Burwood East, Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

 in April 1969. The Burwood store opened to intense interest, with over 40,000 people passing through the checkouts on the first day. The doors had been closed 45 minutes after opening as a safety measure.

In 1978 Kresge
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

 exchanged it's 51% stake in Kmart Australia for a 20% stake in Coles
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...

, then in 1994 Coles bought back all Coles shares from Kresge
Sears Holdings Corporation
Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

.

A long-term licensing agreement allows Wesfarmers to use the Kmart name in Australia and New Zealand.

In 2006, Coles Group
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...

 announced its plans for Kmart, along with BI-LO
BI-LO (Australia)
BI-LO is an Australian supermarket chain owned by Wesfarmers . Once a chain of 180 outlets, most BI-LO supermarkets were re-branded as Coles Supermarkets during 2006 and 2007. In October 2008, Coles stated it was looking to create a new chain to replace the remaining BI-LO stores...

 and the Coles Group liquor brands, to be merged into the Coles brand. The merger would have seen a variety of Coles stores with different purposes, including food, merchandise, petrol and liquor. The plan was for the first re-branded store to open in 2007, with 40 stores, mostly former 'Super K' stores divided last decade into separate Coles and Kmart stores, reformed into Coles Superstores. However, in March 2007, Coles Group
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...

 announced that the plans for these super centres were being deferred, pending the sale of all or part of Coles Group. In August 2007, Wesfarmers CEO Richard Goyder said super centres would almost certainly not be part of the Wesfarmers approach after taking over Coles Group.

Kmart's performance immediately prior to the Wesfarmers takeover was poor. In May 2007, it reported a sales drop of 3.2% for the third quarter, and an overall drop in sales of 3.9% for the first three quarters.

Announcing its plans in August 2007 for Coles Group following their expected takeover, Wesfarmers
Wesfarmers
Wesfarmers Limited is one of Australia’s largest public companies and one of Australia's largest retailers. Its headquarters are in Perth, Western Australia....

 said it would consider selling all or part of Kmart, or converting some stores to the Target
Target (Australia)
Target Australia Pty Ltd is an Australian department store chain owned by Wesfarmers . It operates 172 Target stores and 119 Target Country stores making 291 combined stores with its head office located in North Geelong, Victoria. It sells clothing, cosmetics, toys, homewares, electrical and...

 brand. Wesfarmers took control of Coles Group in November 2007 and by March 2008 had decided to retain Kmart and invest $300m in the chain over the next five years.

During the first financial year of the Wesfarmers takeover (November 2007 to June 2008), Kmart reported revenue of A$2.45 billion, and EBIT
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...

 of A$111 million.

Kmart's performance during the 2009 financial year was quite poor; reporting revenue of A$4 billion and an EBIT
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...

 of A$109 million.

The 2010 financial year saw Kmart with a large increase in EBIT
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...

, reporting revenue of A$4.02 billion and an EBIT
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...

 of A$190 million, which was an increase in EBIT
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...

 of over 74%.

Stores

As at July 2011, Kmart had 172 stores trading across Australia, with 51 trading in New South Wales
New South Wales
New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...

/Australian Capital Territory
Australian Capital Territory
The Australian Capital Territory, often abbreviated ACT, is the capital territory of the Commonwealth of Australia and is the smallest self-governing internal territory...

, 44 trading in Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

, 36 trading in Queensland
Queensland
Queensland is a state of Australia, occupying the north-eastern section of the mainland continent. It is bordered by the Northern Territory, South Australia and New South Wales to the west, south-west and south respectively. To the east, Queensland is bordered by the Coral Sea and Pacific Ocean...

, 14 trading in Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...

, 13 trading in South Australia
South Australia
South Australia is a state of Australia in the southern central part of the country. It covers some of the most arid parts of the continent; with a total land area of , it is the fourth largest of Australia's six states and two territories.South Australia shares borders with all of the mainland...

, 5 trading in Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...

 and 2 trading in the Northern Territory
Northern Territory
The Northern Territory is a federal territory of Australia, occupying much of the centre of the mainland continent, as well as the central northern regions...

. With another 15 stores located in New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

.

Out of those 187 stores, 21 are open 24 hours a day.

Goods Sold

Kmart stores sell typical discount department store merchandise including home entertainment goods, photographic equipment and developing, camping and fishing goods, sporting goods, toys, kitchenware, small appliances, storage & home organisation, Manchester, confectionery, stationery, books, cards & party goods, furniture, garden supplies, automotive equipment, lighting, hardware, luggage, cosmetics, clothing and footwear.

Kmart Photo Centres

Kmart allows its customers to print their digital photos in store as well as create products including personalised photo books, posters, canvas prints and photo DVDs. Kmart also offers customers the ability to process their digital photos online through an arrangement with HP's Snapfish
Snapfish
Snapfish is a web-based photo sharing and photo printing service that is owned by Hewlett-Packard. Members can upload files for free, and are given unlimited photo storage.- History :...

 allowing customers to pick-up their orders for free from any Kmart store.

The photo centres have been powered by Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...

 since 2009, after Kmart ended its 30-year retail photo printing partnership with Kodak Australia.

Kmart Wishing Tree Appeal

Since 1988, Kmart and The Salvation Army
The Salvation Army
The Salvation Army is a Protestant Christian church known for its thrift stores and charity work. It is an international movement that currently works in over a hundred countries....

 have collected over five million gifts nationally.

The concept for the Kmart Wishing Tree Appeal first came about when Eve Mitchell, a team member from the Kmart store in Noarlunga
Noarlunga
Noarlunga can refer to:* Noarlunga Centre, South Australia* Noarlunga Downs, South Australia* Old Noarlunga, South Australia* Port Noarlunga, South Australia...

 suggested Kmart use its network of stores as gift collection points, assisting charity groups at Christmas.

Gifts donated to the appeal are collected from Kmart stores by The Salvation Army
The Salvation Army
The Salvation Army is a Protestant Christian church known for its thrift stores and charity work. It is an international movement that currently works in over a hundred countries....

 and then distributed to those in need.

Over 464,000 gifts were donated to the 2010 appeal.

ANZAC Day

In February 2010 Kmart requested permission from NSW State Government to open their stores on ANZAC Day
ANZAC Day
Anzac Day is a national day of remembrance in Australia and New Zealand, commemorated by both countries on 25 April every year to honour the members of the Australian and New Zealand Army Corps who fought at Gallipoli in the Ottoman Empire during World War I. It now more broadly commemorates all...

 prior to the traditional 1pm time, claiming their customers would be severely inconvenienced by their closure. The request was followed by criticism from politicians, ex-Diggers and their customers. Kmart's Managing Director Guy Russo withdrew the request in early March, apologising to the community and taking full responsibility admitting he was personally responsible.

Kmart Tyre and Auto Service

Specialises in automotive accessories, car servicing, tyres, check-ups and motor vehicle insurance. Historically, these stores are usually (but not always) attached to a Kmart store. In early 2006 a number of vehicle servicing facilities at Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...

 service stations became Kmart Tyre and Auto Service outlets. As of July 2011 there were 251 Kmart Tyre & Auto Service outlets throughout Australia.

In March 2010, Kmart Tyre & Auto Service commenced the sale of car insurance.

Girl Xpress

Specialises in clothing for young urban women. A concept standalone store selling Girl Xpress apparel opened in Victoria in 2006 outside the flagship Burwood East store. Girl Xpress today features as an exclusive brand available within Kmart stores.

Clearance Centre

Kmart opened its first Clearance Centre on November 30, 2006, situated in Ringwood
Ringwood
Ringwood is a historic market town and civil parish in Hampshire, England, located on the River Avon, close to the New Forest and north of Bournemouth. It has a history dating back to Anglo-Saxon times, and has held a weekly market since the Middle Ages....

, Victoria. The Clearance Centre operated the same way as normal Kmart Stores, however all merchandise sold for much less. This format was similar to Megamart
Megamart
Megamart was an Australian chain of stores owned by Coles Group which sold electrical and furniture items. It was a sub-store of department store chain Myer, so it was also known as Myer Megamart or Megamart by Myer...

, a chain Kmart's corporate parent Coles Group
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...

 operated during the early 2000s. The Clearance Centre closed in June 2007.

Kmart Garden Super Centre

Specialised in garden, plants and garden furniture
Garden furniture
Garden furniture, also called patio furniture and outdoor furniture, is a type of furniture specifically designed for outdoor use. It is typically made of weather resistant materials...

. Most of these stores were standalone, "big box" stores in a warehouse format that sold Kmart manufactured or branded outdoor living items. Many lines were not available at standard Kmart stores. The Kmart Garden Super Centre in Campbellfield was the only store that was attached to an existing Kmart store.

Kmart Garden Super Centres were a major sponsor of the Melbourne International Flower & Garden Show.

Between 1999 to 2007 there were a total of six Garden Super Centres with four located in Victoria (Chadstone, Fountain Gate, Campbellfield and Watergardens), one in Queensland (Windsor) and one in NSW at Casula (The Crossroads). In September 2006, Kmart announced that all Garden Super Centres will cease trading by January 2007, claiming the concept didn't fit in with its future business strategy.

Super Kmart

Super Kmart was a hypermarket
Hypermarket
In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise...

 chain existing between 1982 and 1989. The stores sold all the same lines as regular Kmart stores, plus those sold by Coles Supermarkets
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...

. The concept was abandoned by Coles Myer Ltd
Coles Group
Coles Group Limited was an Australian public company that operated numerous retail chains. It was Australia's second-largest retailer, behind Woolworths Limited...

 in 1989 with the existing stores split into two separate stores, a standard Kmart store and a Coles New World
Coles Supermarkets
Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741 stores nationally Coles Supermarkets is an Australian supermarket chain owned by Wesfarmers. It has 741...

 supermarket.

This format was very similar to those of the contemporary Pick 'n Pay Hypermarket
Pick 'n Pay Hypermarket
Pick 'n Pay hypermarkets are a chain of hypermarkets in Brisbane, Queensland, Australia owned by Wesfarmers. There are two stores located at Aspley and Sunnybank Hills...

s.

See also

  • Kmart
    Kmart
    Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...

  • Sears Holdings Corporation
    Sears Holdings Corporation
    Sears Holdings Corporation is a retail conglomerate formed in 2005 by the merger of Sears, Roebuck and Co., of Hoffman Estates, Illinois, with Kmart Holdings Corporation, of Troy, Michigan...

  • Big W
    Big W
    Big W is one of the largest chain of discount department stores in Australia, with over 150 stores. It is a division of Woolworths Limited, the second largest retailer in Australia. Its main competitors are Kmart and Target, both owned by Wesfarmers....

     and Target, Kmart's main competitors

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK