Wesfarmers has revealed a positive results for discount department stores Target and Kmart, as part of its fourth quarter retail sales figures.
According to the results, for the period ending June 30, Kmart achieved total sales of $927 million, an increase of 2.2 per cent on last year.
Comparable store sales also rose by 2.1 per cent.
Total sales of $4.0 billion for the financial year remained in line with last year, with comparable store sales also in line with last year.
Commenting on the results, Kmart managing director Guy Russo said sales growth for the quarter was achieved through strong seasonal trade and a positive customer response to the continued investment in lowering prices on everyday family items.
“Our investment in value, combined with an ongoing focus on inventory management and improvements in the offer, has benefited the business. The changes we have made continue to resonate with our customers and Kmart recorded its tenth consecutive quarter of growth in customer transactions and volumes,” he said.
Kmart's sister brand Target, followed suit with uplifting results for the quarter, with total sales up 2.0 per cent to $915 million, and comparable store sales increasing 4.5 per cent for the same period.
Total sales of $3.7 billion for the financial year, however, were 1.8 per cent below the previous corresponding period, with comparable7 store sales declining by 2.1 per cent.
Despite this, Target managing director Dene Rogers said he was encouraged by the improvement in the sales growth trend during the second half, particularly in the homewares and apparel categories.
“Customers are responding positively to the introduction of the Target Essentials range, improvements in service levels, better communication of Target's value and an expanded online offer,” he said.
Going forward, Rogers said that improving the profitability of promotions and identifying new ways to offer value to customers would continue to be areas of focus for Target.
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