Once people are there, they do spend money.
In the long arc of retail reinvention, Kmart's decision to open a standalone home store in Melbourne's east is less a gamble than a quiet reckoning with how people want to live — and what they're willing to spend to get there. On June 18, the Wesfarmers-owned retailer will debut K Home at Box Hill South, pulling its homewares out of the crowded department store format and into a curated, room-based environment designed to meet Ikea, Amart Furniture, and Freedom on their own ground. The move reflects a broader truth about this economic moment: that value and aspiration are no longer opposites, and the retailer who can hold both at once may reshape the category entirely.
- Kmart is making its most direct move yet into furniture retail, opening a standalone K Home store on June 18 that breaks from the department store model it has always operated within.
- The concept puts Kmart in direct competition with deeply entrenched players — Ikea, Amart, and Freedom — at a moment when Australian households are still pulling back on discretionary spending.
- The Box Hill South store will carry products unavailable in regular Kmart locations, with immersive room displays designed to shift how customers experience and justify furniture purchases.
- Kmart's Anko brand loyalty and rapid inventory refresh cycle give it a genuine competitive edge, but the format must feel distinct enough from its parent stores to justify the trip.
- The trial's success hinges on foot traffic — the perennial challenge for large-format retail — and whether the value proposition holds up in a space built for inspiration rather than convenience.
Kmart is taking a calculated swing at the furniture market. On June 18, the Wesfarmers-owned retailer will open its first K Home store at Box Hill South in Melbourne's east — a standalone concept designed to lift homewares out of the department store format and into a dedicated space built for discovery. It's a direct challenge to Ikea, Amart Furniture, and Freedom, retailers that have long owned the furniture category in Australia.
The Box Hill South location is a trial. Much of what fills the store won't be available in regular Kmart locations, and the environment itself has been reimagined — larger displays, room-based inspiration, an immersive feel rather than warehouse efficiency. Chief commercial officer Callum Smith framed it around affordability: "At a time when value matters more than ever, this trial is about helping Australian families create a home they love at a price they can afford."
What gives Kmart a genuine edge is brand momentum and speed. The Anko product line has developed a cult following — customers hunt for Kmart hacks online and build entire rooms around finds that cost a fraction of what competitors charge. Commercial agent Jake Beckwith noted that Kmart's ability to refresh inventory quickly and track trends is a real competitive advantage in a furniture market where fashion cycles move faster than they once did.
The format also offers structural flexibility. A K Home store can fit into spaces where a full-size Kmart never could, letting the retailer fill network gaps and chase foot traffic in new ways. But the concept faces a narrow challenge: it must feel distinct from a regular Kmart without losing the parent brand's gravitational pull. If Box Hill South works, expansion follows. If it doesn't, Kmart will still have learned something worth knowing about what its customers actually want from a home.
Kmart is taking a calculated swing at the furniture market. On June 18, the Wesfarmers-owned retailer will open its first K Home store at Box Hill South in Melbourne's east—a standalone concept designed to pull homewares out of the department store format and into a dedicated space where they can breathe. The move signals confidence that what works as a bargain-bin discovery in a crowded Kmart aisle might work even better as a curated, room-based shopping experience. It's a direct challenge to Ikea, Amart Furniture, and Freedom, retailers that have long owned the furniture category in Australia.
The Box Hill South location is a trial. Most of what will hang on those walls and sit on those floors won't be available in regular Kmart stores. The space itself has been reimagined—larger displays, room-based inspiration, an immersive environment rather than the warehouse-style efficiency customers know from the main brand. Callum Smith, Kmart's chief commercial officer, framed it as an opportunity to understand how customers actually want to shop for home goods. "At a time when value matters more than ever, this trial is about helping Australian families create a home they love at a price they can afford," he said. The emphasis on affordability is deliberate. Discretionary spending remains under pressure across Australia, and Kmart's entire brand is built on the premise that good design doesn't require a premium price.
What gives Kmart an edge in this crowded space is brand momentum and speed. The retailer's Anko product line has become something of a cult following—people hunt for Kmart hacks online, share tips, build entire rooms around finds that cost a fraction of what competitors charge. Jake Beckwith, a commercial agent at Colliers, noted that Kmart's ability to refresh inventory quickly and stay ahead of trends is a genuine competitive advantage. "They're a really powerful retailer," he said. "They've got a strong brand behind them with Anko and they're able to refresh the product line continuously and keep up with trends pretty quickly and swiftly." That agility matters in furniture retail, where fashion cycles move faster than they used to.
The format itself offers flexibility that traditional department stores can't match. A K Home store can fit into smaller spaces, which means Kmart can plug gaps in its network where a full-size department store would never work. This is crucial for a retailer trying to maximize foot traffic in an era when getting people through the door is half the battle. Alex Groh, a buyers agent at Vanta Advisory, put it plainly: "That's often the biggest struggle that a lot of large-format retail businesses or bulky-goods businesses have. It is getting people there." Once they arrive, the data shows they spend. The ancillary items—the small things that fill a basket—add up quickly.
But the concept faces real constraints. K Home has to feel distinct from a regular Kmart without abandoning the parent brand's pulling power entirely. It's a narrow line to walk. The furniture market is crowded with established players—Focus on Furniture, Nick Scalis, and the international heavyweights all have entrenched positions. Discretionary spending is still under pressure. And the trial store will reveal whether Kmart's value proposition and design sensibility can translate into a format that competes on the furniture retailers' own turf. If it works at Box Hill South, expect expansion. If it doesn't, Kmart will have learned something valuable about what its customers actually want—and that knowledge alone might be worth the experiment.
Notable Quotes
At a time when value matters more than ever, this trial is about helping Australian families create a home they love at a price they can afford.— Callum Smith, Kmart chief commercial officer
Once people are there, they do spend money. So it's a great way to get them in, a great way to get them looking into bigger-ticket items.— Alex Groh, Vanta Advisory buyers agent
The Hearth Conversation Another angle on the story
Why split home goods into a separate store? Why not just expand the homewares section in regular Kmart locations?
Because a department store is designed for speed and efficiency—you grab what you need and move on. Furniture shopping is different. People want to see how things look together, imagine a room, sit on a sofa. That requires space and curation that a Kmart aisle can't provide.
So this is really about creating a different shopping experience, not just moving inventory around?
Exactly. The trial store has room-based displays and immersive environments. You're not just looking at a chair in isolation; you're seeing it in context. That's how Ikea sells furniture—they make you walk through a home.
Kmart's known for being cheap. Does that work in furniture, where people often see it as a longer-term investment?
That's the bet. Kmart's brand is about value without sacrificing design. Their Anko line has a cult following online. People hunt for Kmart hacks. If they can bring that same sensibility to furniture—good design at a price families can actually afford—they've got something.
What's the biggest risk here?
Foot traffic. Large-format retailers struggle to get people through the door. K Home is smaller and more nimble, which helps, but it still needs to feel different enough from a regular Kmart to justify the trip. If it just feels like a Kmart with bigger items, it fails.
And if it works at Box Hill South?
Then you'll see K Home stores opening across Australia. Kmart knows real estate and location strategy better than most retailers. They can plug gaps in their network that a full department store couldn't fill. This could become a significant revenue stream.