What is Wesfarmers (ASX:WES) launching through its Kmart brand?

Wesfarmers is launching a standalone, 3800-square-metre trial store called "K Home" in Melbourne’s eastern suburbs. The immersive showroom directly targets IKEA's flat-pack market by showcasing Kmart’s private label, Anko, in curated, room-set displays.

Why is Wesfarmers (ASX:WES) pivoting Kmart into standalone furniture stores?

Wesfarmers is attempting to capture a larger share of Australia’s $27.5 billion furniture and interiors market. Management wants to leverage the massive popularity of its Anko private label, moving it out of traditional discount department store aisles into a dedicated home environment.

What is the long-term growth strategy for Kmart and its Anko brand?

The K Home trial fits into an ambitious strategy outlined by Kmart’s Managing Director, Aleks Spaseska, to double the retailer's sales to $20 billion within a decade. The strategy relies heavily on using the Anko brand to capture younger, budget-conscious consumers.

How does the Anko brand give Wesfarmers (ASX:WES) a competitive edge over rivals like IKEA?

Anko’s primary competitive advantage is its strict, direct control over its global supply chain. The brand employs a 1000-person sourcing and design team in Asia that manages product design, manufacturer engagement, and raw material procurement.

Is Kmart’s Anko brand successful enough to support standalone stores?

Yes, Anko has grown into a massive global brand since its debut in 2019, currently selling more than one billion items annually across categories like linen, fashion, and toys.

How is the consumer demographic shifting for Wesfarmers’ (ASX:WES) Kmart?

According to Wesfarmers CEO Rob Scott, wealthier shoppers are increasingly cross-shopping and buying Anko products due to tightening household budgets. This structural shift has opened up a completely new market demographic for Kmart.

What are the main bull points for Wesfarmers (ASX:WES) stock following this news?

The bull case relies on Kmart leveraging a highly profitable, vertically integrated supply chain to take market share in a lucrative $27.5 billion sector. Capturing wealthier, trade-down shoppers protects earnings during economic downturns. If the K Home trial succeeds, it provides Wesfarmers with a clear, highly scalable retail rolling format to drive long-term top-line revenue growth.

Image for illustrative purposes only. Not a real photo.

Kmart challenges IKEA with new trial furniture store

Written by Liezl GambePublished Jun. 2 2026Last Updated Jun. 2 2026

Kmart is launching a direct assault on IKEA’s flat-pack empire, opening its first large-scale "K Home" trial store in Melbourne’s eastern suburbs this month.

The 3800-square-metre showroom represents an escalation by Kmart’s parent company, Wesfarmers (ASX:WES), to capture a larger slice of Australia’s $27.5 billion furniture and interiors market.

Departing from traditional discount aisles, the immersive space features curated room-set displays designed to showcase Kmart's powerhouse private label, Anko.

The trial store will house the complete Anko catalogue alongside exclusive furniture and storage ranges previously restricted to online shopping.

Kmart Chief Commercial Officer Callum Smith emphasised that the concept responds directly to shifting consumer habits.

"The space has been designed differently... with a more immersive home environment," Smith said, noting that the trial aims to help Australian families access affordable styling at a time when value matters more than ever.

The expansion capitalises on the phenomenal success of Anko, which has grown into a global brand selling over a billion items annually since its 2019 debut.

Driven by an agile, 1000-person sourcing and design team in Asia, Anko’s tight control over its supply chain allows it to undercut rivals significantly.

Wesfarmers CEO Rob Scott recently revealed that wealthier shoppers are increasingly turning to the brand, fueling rapid growth in furniture sales.

The K Home trial aligns with Managing Director Aleks Spaseska’s ambitious strategy to double Kmart’s sales to $20 billion within a decade by leveraging Anko to capture younger, budget-conscious consumers.