$516 $m
With new management and a re-engineered business, Wesfarmers-owned Kmart has transformed its business over the past three years. Slashing its product range from 100,000 items to 40,000 and shifting from branded to private label merchandise to leverage Wesfarmers’ strong supply chain, Kmart’s new positioning aims to combat sales fatigue by offering “Irresistibly low prices, every day, on everything.” Bold words, but this has given Kmart a viable shot at owning the “low cost” position over its main rival, Big W, while better differentiating Kmart from its Wesfarmers sibling, Target. However, despite its repositioning, the approach to communicating the brand has been more evolutionary than revolutionary, with minimal evidence to signify the change in store formats, business model and private label approach. To reap the benefits of its new strategy, Kmart’s identity must reflect its new business model to ward off the competition and excite shoppers.