Kmart Australia will reduce prices on some clothing items by more than 20% as part of a strategic manufacturing move.
The retailer has commenced manufacturing operations in Java, Indonesia, as production prices in China continue to rise.
The new strategy will see garments such as t-shirts retail for $5, bike shorts for $12, gym tops for $8 and leggings for $18.
Packaging and shipping costs will also be minimised as part of the move to closer production quarters.
Kmart Australia has said workers will be paid more than minimum wage, have health care support and food subsidies.