Kmart Australia

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Kmart Australia

<tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">Image:Kmart Australia Logo-2006.jpg</td></tr>

Type Discount store
Founded 1969
Headquarters Australia and New Zealand

<tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Retail</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Clothing, footwear, bedding, furniture, jewelry, beauty products, garden, stationery, consumables, toys, sporting, automotive, hardware, electronics, and housewares.</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td> (Australia) / (New Zealand)</td></tr>

Kmart store at Kurralta Park in Adelaide's western suburbs.

Kmart Australia is a discount department store chain, equivalent to the stores in the United States bearing the same name. When its first store opened in Burwood East, Victoria (Australia) in April 1969, Kmart Australia was 51 percent owned by the US Kmart Corporation. The Burwood store opened to intense interest, with an estimated 40,000 people passing through the checkouts on the first day. This store was the first drive in shopping centre to be built in Australia.

There are now 186 Kmart stores across Australia and New Zealand, currently owned by Coles Group Ltd.

Kmart, along with Bi-Lo and the Coles Group liquor brands, is set to be merged into the iconic Coles brand. The merger will see a variety of Coles stores with different purposes, including food, merchandise, petrol and liquor. Starting from September 2007 around 40 stores, mostly former 'Super K' stores, which were divided last decade into separate Coles and Kmart stores, will be reformed into Coles Superstores. At least 20 other stores will be converted to Target stores with the remainder to become Coles General Merchandise stores.


[edit] History

Image:SP A00501.JPG
Entrance to Kmart Broadway in NSW.

Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy (Coles) and Kmart Corporation in the US.

In 1978 Coles acquired full control of the operation and in 1994 bought back all shares Kmart Corporation held in Coles.

A long-term licensing agreement allows Coles Group to use the Kmart name. Kmart New Zealand shares merchandise and branding with Kmart Australia, and is owned by Coles Group Holdings New Zealand.

[edit] Departments

Most stores have the following departments:

  • Sound and Vision (Home Entertainment)
  • Photographic
  • Toys and Sporting
  • Camping and Fishing
  • Homewares (includes Kitchen and Appliances)
  • Automotive
  • Do It Yourself (Hardware and Paint)
  • Gardening (includes Plants)
  • Outdoor Living (includes Furniture)
  • Stationery and Home Office
  • Books (includes Greeting Cards and Party Goods)
  • Confectionery
  • Cosmetics (Health and Beauty)
  • Womenswear
  • Menswear
  • Children and Infants
  • Footwear

Stores also have a Seasonal or Promotional section which becomes Easter and Christmas sections at the respective times of the year, and also used for big sales like the July Toy Sale.

[edit] Standalone businesses under the Kmart banner

  • Kmart Tyre and Auto Service
Specialises in automotive accessories, car servicing, tyres and checkups. Historically, these stores are usually (but not always) attached to a Kmart store. In early 2006 a large number of Shell Service Centre's that are attached to Coles Express stores were converted to Kmart Tyre and Auto Service.
  • Kmart Garden Supercentre
Specialies in garden, plants and outdoor furniture. These stores are not attached to a Kmart store, but are standalone, big box stores in a warehouse format that sell Kmart manufactured or branded outdoor living items. Kmart Garden stores sell a range of outdoor items sold in a normal Kmart store, along with bulky outdoor furniture that is sold exclusively through the Kmart Garden Supercentre.
Up until mid-2006 there were 4 Garden SuperCentres in Victoria (Chadstone, Fountain Gate and Campbellfield and Watergardens) but due to decreasing sales and costs they were all sold and now trade under the Flower Power name. There is one in Queensland (Windsor). A Kmart Garden Supercentre opened in NSW in 2002 at Casula (The Crossroads) but closed early 2006 due to lack of business.
  • 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.

[edit] Organisation

Kmart Stores are divided into four areas for management purposes:

  • Entertainment and Leisure (includes the Home Entertainment and Photographic section)
  • Home Living
  • Apparel (includes Footwear and Cosmetics)
  • Administration and Retail Services (includes layby, payroll and cash office)

Entertainment and Leisure and Home Living both come under the broader heading of General Merchandise.

In addition, larger stores have a customer service coordinator and a receiving dock coordinator who looks after the check outs/front end and the receiving bay respectively. The difference between a coordinator and a manager is that a customer service or receiving dock coordinator tends not to have gone through the manager in training program, and cannot be transferred between stores, however they enjoy the same privileges in store, such as being given store keys and alarm codes, whilst being on slightly lesser pay.

Non-management employees are employed under an enterprise bargaining agreement negotiated by the Shop, Distributive and Allied Employees Association.

[edit] Services

  • Customer Service Desk for refunds and returns.
  • Lay-by
  • Fitting Rooms
  • Photo lab
  • Customer Price Check Points
  • Rainchecks
  • Catalogue Specials (normally starts each Thursday)
  • Delivery & Parcel Pickup
  • Fly Buys
  • Coles Myer Source MasterCard

[edit] Catalogue specials

Kmart catalogues generally start on Thursday, where all Kmart stores in Australia open at 8am. The catalogue usually lasts for one week, with the exception of special catalogues, such as the popular Toy Sale catalogue which lasts from two to three weeks. From time to time, Kmart will run promotions such as 20% off all clothing. Until mid 2006 Kmart also offered 15% off storewide promotions which generally lasted 2-3 days. However a change in marketing direction means that these will no longer take place, with the company wanting to focus more on the department sales.

[edit] Layby terms and conditions

The layby service is a popular feature at Kmart which allows customers to set aside goods and pay off the outstanding balance over a period of time. The layby service fee, as of June 2006, is $2.50, which is added to the total amount of the layby.

A normal layby requires a 10% deposit and lasts for 8 weeks. During the length of the layby, regular payments must be made every 2 weeks. Payments can be made at any checkout within the store which the layby was started, provided the customer has their receipt.

If the customer has faulted on their layby (i.e. has not made regular payments or the layby is past the due date), then the layby will be cancelled and an amount of $10.50 will be retained from the deposit. If the customer requests for the layby to be cancelled before they have faulted on their layby, then the amount deducted is $2.50

Due to the limited storage space in most Kmart layby departments, some laybys may be sent to an offsite warehouse for storage. These items require 5 working days notice before customers are either able to pick up the items from the collection facility or the items are delivered back to the store, depending on which store the customer laybys with.

[edit] Photo lab

Most Kmart stores have an in store photo development lab maintained by Kodak and operated by a Kodak trained Kmart specialist. Subject to availability, stores can offer one hour film development at an extra surcharge, or a normal 24 hour (or 48 hour in some stores) service. Stores also have a digital photo processing lab which produces Kodak quality pictures to be picked up on the spot or to be collected later. A new feature of the digital processing lab is the online uploading feature, where customers can download a program and upload photos to be printed and collected at their closest Kmart store.

Depending where a store is located, prices of photos vary. There are 2 sets of prices, one lot about 15% cheaper then normal and stores where there is a lot of competition use the cheaper price set.

Some stores also run a PixiFoto studio.

[edit] FlyBuys

FlyBuys is Australia's leading customer loyalty program. At Kmart, customers accrue 2 points for every $5 they spend. The number of points collected can be increased with the use of the Coles Myer Source MasterCard or selected National Australia Bank credit cards.

[edit] Store credit cards

In 2000, the Kmart Card was launched as an in store credit card. This card was only accepted at Kmart stores, and was operated through GE Capital Finance. A few years later, the card was discontinued in favour of a Coles Myer Card, which could be used at any Coles Myer Store. In 2003, the Coles Myer Source MasterCard was launched, which allowed customers to use their card at any location which accepted MasterCard. The Coles Myer Source card was also linked to the Fly Buys program, where customers can accrue an addition 4 points per $5 spent on purchases made at Kmart paid for using the Source Card.

[edit] Payment

All major credit cards are accepted at Kmart with no surcharge, including Coles Myer Source card, Visa, MasterCard, American Express and Diners Club. Personal cheques are also accepted, as are government cheques with appropriate identification.

[edit] Kmart house brands

  • Jackeroo (Outdoor furniture, garden, camping and BBQs)
  • Living with Deborah Hutton (Kitchenware and manchester)
  • Homemaker (Furniture, kitchenware and manchester)
  • Now (Apparel)
  • Girl Xpress (Apparel)
  • World 4 Kids (Toys)
  • Stockman Weekender (Camping)
  • Magnavox, Audiosonic (Electrical)
  • OfficeOne (Stationery)
  • Performer (Paint)
  • Just Basics (Various)
  • Baby Solution (Child Safety)

Kmart is phasing out its popular 'The Price Brand' of discount products and introducing them all under the 'Just Basics' name. 'Just Copy Paper', Just A Chopping Board' and 'Just Office Calculator' are just a few examples of the new branding.

[edit] Previous logos

[edit] Kmart Radio

Kmart has its own instore radio, called Kmart Radio. It is broadcast into most stores via satellite (Optus B3), and can be heard as the hold music when you phone a store that has the radio installed. The program carries music, news updates and promotional-sales segments as well as commercials. The radio is provided by ARRN (Australasian Retail Radio Network).

More info:

[edit] See also

[edit] External links

Kmart Australia

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