Kmart Group has reported a 24.1 per cent increase in revenue for the first half of the financial year, generating $5.7 billion in the six months to December.
The Wesfarmers-owned group, which includes Kmart and Target, has seen earnings increase 114 per cent to $475 million.
Wesfarmers MD Rob Scott said retail trading results through the first five weeks of the second half are broadly in line with this result, supported by strong growth in areas most affected by COVID-related disruptions in January 2022.
“Kmart Group’s significant earnings result reflected strong operational execution, with comparable sales and volume growth, in addition to the impact of a normalisation in trading conditions following significant COVID-related restrictions in the prior corresponding period."
Kmart Group is positioned to meet changing consumer demand this year, as elevated inflation and higher interest rates result in more value conscious households.
“Customers continued to respond positively to Kmart’s lowest price positioning, and sales growth was achieved across all categories," Scott confirmed.
"Target’s performance reflected continued improvements in the product offer, particularly in the focus categories of apparel and soft home.
"With more normal trading conditions during the half, the full benefits of the significant network change program undertaken across Kmart and Target were also able to be realised.
“Kmart Group continued to improve the digital experience for customers during the half, with ongoing investments in the Kmart and Target apps, and the launch of instore benefits for OnePass members.
"Kmart also continued to progress strategic initiatives to profitably grow its share of wallet, develop its data and digital assets, and digitise its operations.”