Kmart New Zealand has exceeded $1 billion in annual sales for the first time, signalling that the chain is gaining market share and catching up with its local archrival The Warehouse.
The business, which is under the umbrella of Australian conglomerate Wesfarmers, saw total revenue increase 2.3 per cent to $1.022 billion for the year ended June 30.
Meanwhile, The Warehouse chain reported sales of $1.8 billion for the year ended August 3, representing a 1.6 per cent increase.
The two businesses’ bottom lines paint a different picture. Kmart NZ posted a net profit of $102.1 million for the fiscal year, while The Warehouse reported a net loss of $2.8 million despite having about three times the number of stores nationwide.
If this positive trend continues for Kmart, it could mean that the retailer is eating into the Red Sheds’ sales and gaining more market share.
According to the NZ Herald, Kmart is working on its mega Westgate store in Auckland. The 6700sqm store is expected to open next year, marking the largest Kmart in New Zealand and the chain’s 28th location in the country.
Meanwhile, The Warehouse Group CEO Mark Stirton recently announced the company would be conducting a comprehensive cost reset program to rein in its cost of doing business.
