Both Kmart and Target are set to benefit from the planned set-up of a new 100,000 square metre omnichannel fulfilment centre in South West Sydney.
The centre is scheduled to be operational by the end of 2027 and is set to fulfil both store and customer orders across New South Wales. It will be located at ESR’s Moorebank Intermodal Precinct near Liverpool.
Kmart and Target both sit under Kmart Group, with that sitting under retail and resource conglomerate Wesfarmers.
Kmart and Target CEO John Gualtieri said the investment in the new Moorebank omnichannel fulfilment centre will be an important part of the business’ long-term strategy to modernise its supply chain and simplify store operations.
“By modernising our fulfilment capabilities, we’re increasing speed, efficiency and flexibility across our network,” Gualtieri said. “Ultimately, this is about delivering even more value to our customers, which is central to who we are.”
Kmart and Target operate nearly 450 stores combined across Australia and New Zealand, with Kmart at around 322 by the end of FY24 and Target at around 124.
Around 50 Kmart stores are located across New South Wales, with Target stores at around 30.
Retail stores remain the key driver of revenue for the group, with its half-year trading update indicating that 90 per cent of its sales come from store transactions.
Gualtieri said its store network for Kmart Group remains core to its customer offering.
On top of this new fulfilment centre, Kmart Group has also recently benefited from the transfer of Catch's e-commerce fulfilment centres, after the online platform was shut down this year amid financial troubles.
The entire Moorebank Intermodal Precinct, comprising 12 tenants including Kmart, is projected to deliver $11 billion in economic benefits over the 30 years following completion, including $3.6 billion to the economy of Southwest Sydney.
The precinct is expected to create more than 1,300 construction jobs during the build-out phase. Once fully operational, it is projected to support approximately 6,800 direct and indirect jobs, including over 500 at Kmart Group – primarily consisting of existing team members transferring to the new facility.
The omnichannel fulfilment centre has also been designed to target a minimum 5 Star Green Star v1.3 rating, incorporating smart lighting controls, water reuse systems, as well as a “thermally responsive” colour palette.
“The Precinct is a major boost for the local community, creating hundreds of jobs and contributing to the long-term economic growth of south-west Sydney,” Deputy Premier and Minister for Western Sydney, Prue Car, said.
“This will create opportunities for local workers, and I am pleased this investment will mean local families benefit from long-term employment close to home.”