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Kmart Leverage OneDigital For Fast Delivery, Online Exclusives

Kmart is ramping up its digital presence and ability to quickly, cheaply and accurately fulfil delivery through its parent company Wesfarmers’ new OneDigital division.

Kmart Managing Director Ian Bailey shared the retailer’s plans during a Wesfarmers strategy briefing day.

“We will increasingly be leveraging OneDigital capabilities to enhance our customer insights, access new channels to market and accelerate new capabilities such as centralised online fulfillment,” Bailey said.

“Kmart has invested in a number of technology platforms and data assets, which will enable ongoing operational improvements designed to grow revenue and reduce operational.

“In an environment where inflation is present and value is going to become increasingly important, these capabilities provide the ability for Kmart to extend its leadership on price.”

Bailey noted that 21 million Australians live within 10 kilometres of a Kmart store. The digitalisation of many of its processes will allow lower prices, and a wider range of goods.

“Kmart’s strategic priorities over the medium-to-long term focus on leveraging our unique competitive advantages and emerging digital capabilities to grow our share of wallet,” Bailey continued.

“Kmart will leverage its product development capabilities, and digitise the sourcing and supply chain to deliver better products at even lower prices.”

This strategy “will be delivered by accelerating our online offer, personalising the customer experience, and digitising the in-store operating model”. This includes the ability to launch new categories as online exclusives” as it continues to offer a smaller selection of categories in store.

“Kmart is building a hybrid fulfillment model that will enable low cost and fast deliveries to customers,” Bailey revealed.

“The first step towards this will be to leverage Catch’s new fulfillment facility in NSW to fulfill a portion of kmart.com.au orders.

“We expect to launch this in the first quarter of FY23, later this year.”



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