Kmart NZ tops $1 billion in revenue as Aussie giant continues to grow
Kmart New Zealand has passed $1 billion in annual sales for the first time as Kiwis continue to shop up large at the Australian retailer.
Owned by the Australian group Wesfarmers, which also owns Bunnings Hardware, Kmart NZ reported total revenue of $1.022b for the 12 months ended June 30, 2025, up 2.3% from $999.5 million in 2024.
But its bottom-line net profit fell 3.7% from $106m to $102.1m on the back of higher expenses.
The cost of goods sold by Kmart NZ climbed by more than $25m year on year from $560.7m to $585.8m.
Administration costs rose from $33.2m to $35.9m, largely driven by increased employee benefit expenses.
Occupancy costs for the business were up from $183.6m in 2024 to $190.7m in 2025, reflecting the rising costs of rates and rents for Kiwi businesses.
Kmart NZ made a gross profit or operating profit of $436.6m for the year, down from $438.7m in the prior corresponding period.
The company paid a dividend of $77.8m to its parent entity in Australia.
Wesfarmers and Kmart Group have been approached for comment.
Bigger and bigger
The result comes as the Aussie retailer continues work on its mega Westgate store in Auckland’s west that is anticipated to begin trading next year.
The under-construction store will be 6700sq m, making it the largest Kmart in the country and its 28th location.
About 240 staff will be employed at the new site, which is to have wider aisles, bold graphics and extended product ranges.
It is being built directly opposite the Westgate Lifestyle Centre anchored by Harvey Norman, Briscoes and Rebel Sport.
The business has, however, been caught up in the asbestos play-sand scandal, with recent reports revealing Kmart NZ sold 67,000 units of coloured children’s sand across the four products.
Kmart NZ’s result comes as Kiwi retail rival The Warehouse Group is in the midst of trying to turn around its poor financials.
The Warehouse still brings in more sales, reporting $1.8b in its 2025 annual result, but the Red Sheds are making nowhere near the same profits, reporting a $2.8m loss for the last financial year.
That is despite having about three times the number of stores nationwide.
The Warehouse chief executive Mark Stirton recently announced the company would be conducting a comprehensive cost reset programme, which could slash head office roles, as it attempts to rein in its cost of doing business.
Meanwhile, Ikea is set to open its doors on December 4, posing another threat in the competitive retail industry.
Ikea’s product range includes many similar items sold by Kmart and The Warehouse, with apparel and toys the only clear standout categories that differentiate them.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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