Kmart has launched a new homewares brand, K Home, aiming to take on Ikea in the Australian market. However, Inside Retail Asia reports that scaling the concept requires overcoming significant real estate hurdles, including finding suitable locations with the right size and foot traffic.
The property puzzle is central to K Home’s expansion plans. Unlike Kmart’s typical large-format stores, K Home requires a different layout and more specialized fixtures, making it harder to retrofit existing spaces. The brand is reportedly looking at both standalone stores and mall tenancies, but rising rents and limited availability of prime spots are complicating the rollout.
Industry observers note that K Home’s success will depend on securing high-traffic locations while managing costs. Kmart parent Wesfarmers has not disclosed a specific store count target, but analysts suggest the brand may need to open at least 30 to 50 stores to achieve meaningful scale in the competitive homewares segment.