Excluding Amazon, Kmart is emerging as a threat to other marketplaces as the low-price retailer expands its range and maintains competitive pricing across its online channel.
This is according to a note to investors from Jarden shared in August, which explored cross-visitation across marketplaces in the Australian market.
In it, Jarden analysts noted that across all the categories sold by Kmart, cross-visitation was up by 72 basis points in the last six months vs the last 12 months.
Temple & Webster and JB Hi Fi saw the biggest cross-visitations to Kmart in this period, up 236 basis points and 214 basis points respectively.
“Looking from a last 25-month lens, Baby Bunting (21.9%) and Big W (28.9%) had the highest cross-visitors to Kmart when customers visited their sites,” the note read.
This comes as marketplaces hold the title as the biggest retail channel in Australia, posting $5.1 billion in sales for the June quarter, and the second-fastest growing channel, up 17 per cent year-on-year.
Amazon is clearly leading the growth, as the sector is set to take material share in the coming years, Jarden added. This impact will be further exacerbated by AI and rising agentic shopping use.
Amazon has been named as the most disruptive, with the highest level of cross-visitations in the last 25 months. Despite this, clothing as a category at Amazon has the lowest average cross-visitation, at around 28 per cent.
Big W, Harvey Norman, Baby Bunting and Temple & Webster have the highest cross-visitation score with Amazon, while Shein, Temu and Myer were less at risk.
The investor note also pointed out that Temple & Webster, Kmart and Temu were an emerging risk, as these saw the highest visitation increase to Amazon in the past six months vs 12 months, with TPW up 106 basis points, Kmart up 62 basis points and Temu up 60 basis points.
In that same time frame, cross visitation fell for Myer (down 82 bps), Shein (down 84 bps), Big W (down 51 basis points) and Harvey Norman (down 33 basis points.
“Looking at the marketplaces at a category level, when comparing 6m vs 12m cross-visitation, the category that saw the biggest increase in visitation was clothing,” Jarden analysts shared.
“In Baby, Baby Bunting saw the biggest movements, with on average -42 bps of cross-visitation declines to other marketplaces, in H/H goods MYR saw -41 bps of cross visitation declines while TPW saw +40 bps of visitation increases to other marketplaces.
“Clothing had Shein cross-visitation up on average +217 bps driven by Temu increases.”
Kmart's emergent status here comes as the retailer saw a near 25 per cent year-on-year jump in website traffic in August to 26.46 million visits, according to Semrush.
The national retailer is now at number three of the most-visited retail websites in Australia, behind Bunnings at 26.66 million visits (up 4.11 per cent YoY), and Amazon at number one with 56.13 million visits (down 0.26 per cent YoY).
