The AMAZING Kmart Fact You Never Knew
There’s no denying Kmart is a force to be reckoned with at the moment.
So much so there is talk their parent company, Wesfarmers, needs to sell the brand in order to save its other flailing department store, Target.
But what is their secret?
What is Kmart doing right that other brands like Target and Big W doing wrong?
According to Inside Retail there’s one specific fact that surprised us.
Kmart’s price point.
While we knew they were cheap, would you believe their average sale price is just $7?!
In fact, they’ve embraced their Everyday Low Prices motto to the point that most stock is priced for $10 or less on average.
Compare this to their competitors where you could drop mere dollars on a shirt, but hundreds on a vacuum and it makes Kmart look the more enticing option.
“This sort of price spread automatically indicates to a lay shopper that sourcing might not be as competitive as it could be, thus this product might not be as cheap as it could be,” Arani Satgunaseelan says of the difference.
So is it too late for Big W and Target who have seen their profits drop as Kmart’s soar?
According to the retail strategy and analytics consultant, they are currently in the same position as Kmart was in 2008… so it is possible to make a comeback.