Australian retailer Kmart has upgraded its online shopping portal with new artificial intelligence (AI) capabilities.
In a deal with Google Cloud, Kmart’s online experience will include a retail-first virtual try-on experience and “see it in my space” functionality, allowing customers to preview outfits on themselves and see home products via AI technology positioned in their own space before purchasing.
The new experience reflects Kmart’s investment in AI-powered retail innovation integrated within Kmart’s new conversational AI shopping assistant, Joy. These are available on the Kmart website and launching in the Kmart app in June.
The virtual try-on and “see it in my space” capabilities are integrated with Joy, which offers various inputs for customers, including product discovery comparisons and updated search options using natural language prompts such as style, colour, occasion and budget.
Customers can also upload photos to receive tailored recommendations.
“Customers aren’t just searching anymore; they’re engaging conversationally and looking for ideas and guidance,” Kmart Group CCO Bernard Wilson said.
“Joy and our AI experiences help them narrow the choices and find what’s right, across Kmart’s range of great products at low prices. This is a major step forward.”
Wilson added that he and his team are testing how agentic AI can support customers at various stages of the shopping journey.
“Our focus is on what customers value most: inspiration and affordable everyday products. Being focused on what you need and ensuring it’s the best product for what you require is key - especially when budgets are tight for families.”
Google Cloud AU/NZ vice president Paul Migliorini said AI represents a massive opportunity for retailers to completely redefine the shopping journey, making everyday tasks – such as planning an event or finding the perfect gift – “feel incredibly intuitive”.
Kmart’s online upgrades come as Kmart Group’s online sales – which include Target online and marketplace – made up 10.3 per cent of total sales in the first half of FY26. This equates to around $630 million out of $6.3 billion made in total in the six months to December 31, 2025.