Kmart launches furniture showroom concept to compete in $35 billion home goods market
Kmart is opening its first dedicated furniture and homewares showroom called "K Home" in Melbourne's Box Hill South, marking the retailer's expansion into physical furniture retail after years of online-only sales. The 3,800-square-metre trial store positions Kmart to compete directly with IKEA in Australia's $35 billion furniture market, where Kmart currently holds a 12 percent share. The move reflects Wesfarmers' strategy to maintain physical retail relevance despite e-commerce growth, while also integrating AI tools to enhance customer shopping experiences.
Kmart, owned by Wesfarmers, is launching its first standalone furniture and homewares showroom in Melbourne as part of a strategic expansion into physical furniture retail. The new "K Home" concept store spans 3,800 square metres and will feature Kmart's popular Anko brand alongside curated furniture and storage products. According to Wesfarmers CEO Rob Scott, the dedicated showroom addresses limitations in displaying bulky furniture within existing Kmart stores and navigates retail zoning restrictions that prevent selling furniture alongside general merchandise in some areas. Kmart currently holds a 12 percent share of Australia's $35 billion furniture and homewares market. The trial store's success will determine whether Wesfarmers expands the concept further. The company is simultaneously investing in AI integration, with tools like "Joy" at Kmart and "Buddy" at Bunnings showing strong adoption rates and improving customer conversion and basket sizes amid ongoing cost-of-living pressures.
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- Sydney Morning HeraldCenter
Why Kmart is opening up a furniture showroom and taking on IKEA
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