Kmart returning checkouts to exits in Australia
Kmart Australia is overhauling its store layouts and launching a specialized retail concept as it pivots to address shifting consumer spending habits. Managing Director Aleksandra Spaseska confirmed that 16 of the company’s roughly 300 locations have already transitioned to the “Plan C+” format, which relocates cash registers to store entrances. The retailer plans to expand this conversion to 40 stores by the end of the 2026/27 financial year to combat a trend of increasingly value-conscious and discerning shoppers.
Did You Know? Kmart previously attempted to move its cash registers to the middle of its stores between 2012 and 2015, a design choice that was widely criticized by its customer base at the time.
Strategy Behind the Store Refurbishments
The “Plan C+” format introduces entry and exit gates alongside the relocated registers. According to Spaseska, this layout facilitates improved space allocation and visual merchandising. The company reports that the change is driving higher sales through increased cross-shopping between departments, resulting in more items per customer basket. The retailer is also expanding the use of RFID tags across most of its apparel range to improve inventory integrity and on-shelf availability.
Expansion into Specialized Retail
Kmart is set to trial a standalone home and furniture concept, “K Home,” in the Melbourne suburb of Box Hill next week. The format aims to provide a more immersive experience for customers by showcasing the brand’s Anko range through room-based inspiration and curated displays. Spaseska noted that the store will feature products typically restricted to online-only sales due to space constraints in standard Kmart locations. This trial is intended to help the company learn and refine its model for potential future opportunities in the home goods sector.
Expert Insight: The move to consolidate home goods into a dedicated, immersive format suggests Kmart is attempting to defend its market share by elevating the customer experience. By curating products that are usually hidden in online catalogs, the retailer is testing whether a physical “destination” store can generate higher engagement than traditional, high-volume retail layouts.
Future Supply Chain and Market Outlook
Beyond store floor changes, Kmart continues to build out its broader business infrastructure. A 10-hectare automated customer fulfilment centre in Moorebank, Sydney, remains on schedule for completion in 2027/28. The company expects this facility to increase supply chain resilience and efficiency. Additionally, the retailer’s online marketplace, which launched in May 2025, has grown to include 130,000 products from 90 different sellers.
Analysts note that these investments come as household budgets face significant pressure. Spaseska stated that customer data confirms cost-of-living concerns are currently the primary focus for households, influencing how shoppers manage their budgets and seek value.
Frequently Asked Questions
What is the “Plan C+” format?
It is a store layout that features entry and exit gates and moves cash registers back to the store entrances.
When will the new K Home concept store open?
The trial store is scheduled to open in Box Hill, Victoria, next week.
Why is Kmart investing in these changes?
The company is responding to increasingly value-conscious customers who are buying fewer items, aiming to drive higher sales through better store navigation and more immersive product displays.
How might these physical store modifications influence the future of retail competition in the home goods market?