Kmart to Open First Standalone Home Store, K Home, in Melbourne
Kmart, owned by Wesfarmers, will open its first standalone home store, K Home, at Box Hill South in Melbourne's east on June 18. The trial store will focus on larger furniture items, curated displays, and room-based inspiration, with most products not available in regular Kmart stores.
Key Details
- K Home will feature a more immersive home environment compared to traditional Kmart stores.
- The trial aims to test demand for Kmart's home range as a separate retail format.
- Kmart chief commercial officer Callum Smith stated the store will help understand how customers prefer to shop for home items.
- The store emphasizes value for families.
"The store will help us understand how customers prefer to shop for home items."
— Callum Smith, Kmart chief commercial officer
Expert Opinions
- Colliers commercial agent Jake Beckwith said K Home could compete with Ikea, Amart Furniture, and Freedom, rather than Spotlight.
- Beckwith noted that Kmart's ability to quickly refresh products and choose strategic locations will be crucial for potential expansion.
- Vanta Advisory buyers agent Alex Groh stated the concept could attract foot traffic to a physical retail destination, which is often challenging for large-format retailers.
- Groh added that K Home must differentiate itself from regular Kmart while leveraging the parent brand's appeal.
"Kmart's ability to quickly refresh products and choose strategic locations will be crucial for potential expansion."
— Jake Beckwith, Colliers
Background
The trial comes as discretionary spending remains under pressure in the furniture market, with established brands like Focus on Furniture and Nick Scali already present.