Kmart is reversing one of its most controversial store design decisions, with the retailer moving checkouts back towards store entrances as part of a major refurbishment program rolling out across Australia.
The budget retail giant has already transformed 16 stores under a new layout concept and plans to expand the format to around 40 locations by the end of the 2026/27 financial year.
For many shoppers, the change marks a return to a more familiar store experience. Kmart famously relocated its registers to the centre of stores between 2012 and 2015, a move that often frustrated customers navigating large trolleys through crowded aisles on their way to pay.
The updated format introduces entry and exit gates, while shifting checkout areas back towards the front of stores. According to Kmart Group, the redesign also creates more room for product displays and allows departments to flow more naturally into one another.
The retailer says the new layout has encouraged shoppers to browse across multiple categories and add more items to their baskets, prompting the company to accelerate its investment in the rollout.
Melbourne to trial new K Home store
Alongside the store refreshes, Melbourne will become the testing ground for a brand-new retail concept dedicated entirely to homewares and furniture.
The first standalone K Home store is set to open in Box Hill next week, offering a different experience from a traditional Kmart. Instead of the usual mix of fashion, toys and household essentials, the concept focuses exclusively on home living.
Shoppers can expect styled room displays, curated collections and inspiration-led layouts designed to showcase Kmart’s growing homewares range. The store will also feature products that are typically available only online due to space limitations in standard stores.
The trial will help Kmart determine whether customers want a more specialised home-shopping destination and whether the concept could expand in the future.
Online growth & new technology
Kmart’s online marketplace, launched in 2025, now offers more than 130,000 products from dozens of third-party sellers, significantly expanding the range available beyond what shoppers can find in physical stores.
The retailer has also widened its use of RFID technology across much of its apparel range, allowing staff to track stock more accurately and improve product availability on shelves.
Meanwhile, construction continues on Kmart’s massive automated fulfilment centre in Moorebank, Sydney. Scheduled to open in 2027/28, the facility is expected to strengthen the retailer’s supply chain and support future online growth.
Cost-of-living pressures continue to shape shopping habits
Despite Kmart’s expansion plans, the retailer says Australian shoppers remain highly focused on value as cost-of-living pressures persist.
The company has observed customers becoming more selective with their purchases in recent months, often buying fewer items and paying closer attention to household budgets.
That trend has reinforced Kmart’s position as one of Australia’s go-to destinations for affordable homewares, clothing and everyday essentials, which may help explain why the retailer is doubling down on store upgrades and new concepts aimed at attracting budget-conscious shoppers.
