Kmart Australia is launching KHome, a 3,800-square-metre concept store in Melbourne designed to showcase its full homeware range, according to parent company Wesfarmers. The trial aims to address physical space constraints in traditional stores, allowing the retailer to display furniture previously restricted to online-only sales. Success in this pilot may lead to an expanded rollout of the format.
Why is Kmart launching a dedicated home concept store?
Kmart is shifting its strategy to compete more directly with established furniture retailers like IKEA and Freedom Furniture. Wesfarmers chief executive Rob Scott stated that existing Kmart outlets suffer from “limited space,” which has historically prevented the company from effectively displaying larger furniture items. By moving these products into a dedicated environment, the company hopes to bridge the gap between its digital catalogue and the physical shopping experience.
The KHome concept focuses on “room-based inspiration,” shifting away from the traditional high-density shelving found in standard Kmart stores to a more immersive retail layout.
How will KHome differ from a standard Kmart store?
The KHome store features a layout specifically curated to help customers visualize products in a home setting. Kmart Group chief commercial officer Callum Smith described the space as an “immersive home environment” that utilizes room-based displays rather than traditional aisles. This design choice mirrors the showroom tactics used by competitors, which prioritize customer flow and stylistic grouping over sheer inventory volume.
What happens if the KHome trial succeeds?
The future of the KHome brand depends on performance metrics, specifically customer traffic, sales growth, and overall profitability. According to Rob Scott, Wesfarmers is treating this as a test case. If the concept generates sufficient return on investment, the company plans to open additional locations. This measured approach allows Wesfarmers to test the viability of a specialized retail footprint without the immediate capital expenditure of a nationwide rollout.
Retail Format Comparison
| Feature | Standard Kmart | KHome Concept |
|---|---|---|
| Primary Focus | General Merchandise | Home & Furniture |
| Display Style | High-density aisles | Curated room sets |
When shopping for large furniture items, check the retailer’s online “click and collect” availability before visiting, as some items may still be exclusive to specific concept stores or warehouse locations.
Frequently Asked Questions
- Where is the first KHome store opening? The first concept store is located in eastern Melbourne.
- Will KHome replace standard Kmart stores? No, it is a trial concept intended to complement the existing store network.
- Can I buy furniture that isn’t in the store? Yes, the retailer continues to maintain its online furniture range for items that may not be displayed on the shop floor.
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