Low-price retailer Kmart is leaning more into youth-led fashion trend cycles as youth spending on fashion in Australia grows.
Womenswear buyer Cat Wringe said that Kmart’s youth apparel segment has seen some strong appetite over the last year.
“As we’ve focused more on our youth customer, fashion has naturally become an even stronger part of our apparel range at Kmart,” Wringe said. “Our Gen-Z customer is quick to spot trends, and they love switching up their style. They share everything online, which has encouraged us to be more agile, bold and creative in the way we design new collections.
“We’ve evolved our range to include more trend‑led pieces, elevated details and versatile styling options, allowing our customers to have fun with fashion without the pressure of a big spend.”
This comes as the global Gen Z fashion market is expected to grow at a compound annual growth rate of 22.6 per cent between 2025 and 2033, according to HTF Market Intelligence, which could hit a total value of US$118.6 billion (~A$168.9 billion). Asia Pacific is tipped to be the dominating region.
The key market drivers for this growth include increased social media influence on purchasing, a desire for individuality in fashion, growing interest in sustainability, a rise in influencer-led marketing, and digital-first shopping experiences
The ramp-up in youth fashion at Kmart also comes as its sister subsidiary Target reported more difficult trading conditions in apparel over the first half of FY26, particularly in seasonal categories. Both retailers are housed under Kmart Group, with that under the conglomerate Wesfarmers.
Despite challenges at Target, Kmart Group revenue increased by 3.3 per cent to $6.3 billion in the first half. Wesfarmers noted in a trading update that this growth was driven by “strong value credentials” and the uniqueness of its Anko product range across various retail categories – including apparel.
The company also reported product innovation in Anko’s ‘one-up’ and ‘two-up’ price tiers. This is a merchandising tactic designed to encourage customers to trade up from base-level, low-cost items to slightly higher-priced, better-quality options.
Kmart’s focus on youth apparel also comes as key youth brands in Australia buck industry averages, with Universal Store Group – which also manages the booming retail brand Perfect Stranger – reporting double-digit growth in sales over the last year.
As a volume retailer, Kmart works closely with its Melbourne-based design teams to develop new fashion ranges. Wringe said the team is now using digital tools and real-time insights to guide how broad or deep they can go.
“That flexibility allows us to respond quickly and make informed decisions as customer preferences evolve,” Wringe said.
“The biggest shift has been around speed and mindset. Reacting faster, watching what resonates on social media in real time, and building ranges that feel fresh, relevant and genuinely wearable for everyday life. It’s been a really energising evolution.”
Historically, fashion in Australia and New Zealand followed more traditional seasonal cycles, with longer lead times built around summer and winter ranges. Wringe said customers didn’t have the same immediate exposure to global trends, so speed wasn’t as critical as it is today.
“That’s changed significantly,” she said. “With social media and digital platforms giving customers instant access to global fashion moments, expectations around newness and relevance have shifted. Trends can emerge and evolve very quickly, and customers are looking to see those reflected in‑store sooner.
In response, we’ve evolved how we work. We now track trends in real time and collaborate closely across our design teams based in Melbourne to move faster and more flexibly. This allows us to develop, refine and deliver styles that our customers are loving, and to bring them into stores at the right moment, while maintaining the quality and value Kmart is known for.”
Alongside the opportunities in youth, Wringe said she and her team are also considering where comfort and trend overlap with updated fabrics, new shapes and everyday styles that still feel current.