Eagle-eyed shoppers have been left gobsmacked after spotting Kmart’s popular home brand homewares range Anko appear in Target stores across the country.
The sharing of Anko (a synonym for “a new kind of”) stock across both brands was prompted by the ongoing cost of living pressures that many Australians are currently facing and shoppers’ desire to see more budget-friendly products on shelves.
WATCH NOW: Nicole Kidman models in a 1984 Target catalogue. Article continues after video.
Speaking with The West, Kmart Group Managing Director Ian Bailey revealed that the Anko rollout in Target stores had produced “very good results” so far.
“This trend to value is going to continue,” he told the publication.
“I think the search for value is something (consumers) are going to try to do as they try and figure out how they maintain their lifestyle.”
The news comes just over six months since the popular shopping destinations were merged into one, ten-billion-dollar business by parent company Wesfarmers, which owns both retail chains.
Specifically, Target was “folded” into Kmart, as a means of improving both sales and updating outdated department store technology.
Ian Bailey said at the time that the scheduled changes would have “no impact” on shoppers’ visits to their local Kmart and Target stores.
“With customers now demanding value more than ever, this new operating model will unlock a new level of scale and productivity across both brands, so we can deliver even greater value to our customers in the future,” he said in a statement.
“For store networks and 50,000 store team members – it’s business as usual – as we continue to focus on providing the best value products to the thousands of customers in Australia and New Zealand who choose to shop at Kmart or Target every day.”
The move came as no huge surprise and came almost sixteen years on from when Target was acquired by Westfarmers as part of the Coles Group Limited acquisition in November 2007.
Since then, both Target and Kmart have operated together, but separately.
It is expected that there will be a “handful of redundancies” but the decision was one of “strength, not weakness.”
“Kmart and Target are both strong businesses. I don’t see us doing this from a position of weakness. It’s quite the opposite. I’d say we’re strong, but I think there’s an opportunity to really capitalise on this time and find ways to continue to deliver better value for customers,” Ian Bailey also told the Australian Financial Review.
“What we found was that running two businesses it was very, very difficult to get into Target, and to get those benefits. This is really why we decided to push the two businesses into one.”
But not to fret!
From a shoppers’ perspective, nothing will be changing, with both stores retaining their names and remaining separate.
Kmart will continue to be a price-drive retailer whilst Target will continue to focus on affordable apparel and soft home furnishings.
Speaking with news.com.au Queensland University of Technology leading retail expert Dr. Gary Mortimer said that the “folding” of Target would provide “better prices” and a “better range of offers” for consumers.
“If you want everyday low prices,” you’ll head to Kmart,” Dr Mortimer said.
“If you want a better quality, better value offer, you’ll go into a Target store.”
