page_title: Kmart Australia
section_title: History
hierarchical_section_title: Kmart Australia / History
caption_attribution_description: English: A Kmart store within Eastland Shopping Centre, Ringwood, an eastern suburb of Melbourne.
context_page_description: Kmart Australia Limited is an Australian-based chain of affordable retail stores owned by Wesfarmers. The company operates 234 stores across Australia and New Zealand, consisting of 209 stores in Australia and 25 stores in New Zealand, with its head office located in Mulgrave, Melbourne.
context_section_description: Kmart Australia Limited was born out of a joint venture between G.J Coles & Coy Limited (Coles) and S.S. Kresge Company in the United States, with Kresge owning 51% of the common stock in the company. They began to develop Kmart stores in Australia in 1968. The first store opened in Burwood East, Victoria on 30 April 1969 with an estimated 40,000 people passing through the checkouts and taking in over $97,000 (equivalent to A$1.17 million in 2020) on the first day. The store was opened by Mrs HB Cunningham, wife of the president and chairman of S.S. Kresge Company
  The doors had been closed 45 minutes after opening as a safety measure. The site was renovated in 2010 to be a shopping mall known as Burwood One.
  In 1978 Kresge exchanged its 51% stake in Kmart Australia for a 20% stake in Coles. In 1994 Coles bought back all shares held by Kresge.
  Kmart expanded to New Zealand in 1988 with a store in Henderson, Auckland.
  A long-term licensing agreement between Sears allowed Wesfarmers to use the Kmart name in Australia and New Zealand. In August 2017, Wesfarmers purchased the Kmart brand name for use in Australia and New Zealand for $100 million outright, ending the licensing agreement.
  In 2006, Coles Group announced plans for Kmart, along with BI-LO and the Coles Group liquor brands, to be merged into the Coles brand. The first re-branded store was planned to open in 2007, with 40 stores, mostly former 'Super K' stores divided last decade into separate Coles and Kmart stores, reformed into Coles Superstores. By March 2007 the plans for these super centres were deferred pending the sale of all or part of Coles Group, and in August 2007, incoming owners Wesfarmers said super centres would almost certainly not proceed.
  Kmart's performance immediately prior to the Wesfarmers takeover was poor. In May 2007, it reported a sales drop of 3.2% for the third quarter, and an overall drop in sales of 3.9% for the first three-quarters.
  In August 2007, Wesfarmers said it would consider selling all or part of Kmart, or converting some stores to the Target brand. Wesfarmers took control of Coles Group in November 2007 and by March 2008 had decided to retain Kmart and invest $300m in the chain over the next five years.
  After continuing poor performance in 2009, the 2010 financial year saw a large increase in EBIT, reporting revenue of A$4.02 billion (equivalent to A$4.74 billion in 2020) and an EBIT of A$190 million (equivalent to A$224 million in 2020), an increase in EBIT of over 74%. This increase was achieved under the leadership of Guy Russo, who focused on lowering prices and who started to introduce more on-trend pieces.
  On 15 November 2012, Australia's first multi-level Kmart opened in Adelaide's Rundle Mall.
  As of August 2015, Kmart has 214 stores trading across Australia – 52 in New South Wales and the Australian Capital Territory, 47 in Victoria, 41 in Queensland, 23 in Western Australia, 15 in South Australia, 5 in Tasmania and 2 in the Northern Territory. There are 20 stores located in New Zealand.
  In August 2018, Continental AG acquired Kmart Tyre & Auto Service for $350 million.
caption: A Kmart store within Eastland Shopping Centre, Ringwood, an eastern suburb of Melbourne.
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