Wesfarmers, parent company of Kmart and Target, has revealed promising second quarter sales results for both brands.
The figures, for the period ending December 31 2012, saw an uplift for both brands in total sales for the quarter, with Kmart up 3.8 per cent to $1.4 billion.
Total sales for Target also rose 0.6 per cent above the previous corresponding period, to $1.3 billion.
Comparable store sales, however, dropped 0.2 per cent below last year for Target, with sister brand Kmart faring slighter better with comparable store sales increasing 3.7 per cent. This represented the 12th consecutive quarter of growth in transactions and units sold for Kmart.
Overall, total sales for Kmart increased 1.2 per cent to $2.1 billion for the first half, with comparable store sales declining 1.8 per cent.
Total sales for Target for the first half also rose (3.5 per cent) to $2.4 billion, with comparable store sales increasing 3.0 per cent.
Commenting on the results, Kmart managing director Guy Russo said the business was particularly pleased with the continued growth in transactions and units sold.
“The focus on driving volume and improving our operational execution resulted in good performance in stores across Australia and New Zealand. Growth in the quarter was also well supported by the pleasing performance of our seasonal and everyday core ranges.
“The business continued to benefit from better sourcing and improved inventory quality and is well positioned for the balance of the financial year,” he said.
Target managing director Dene Rogers added that he was satisfied with progress made during the half, with significant investment made in building organisational capability to implement strategic programs to strengthen Target’s mid-tier positioning.
“We are encouraged by the customer response to initiatives already implemented, particularly in our footwear, intimates and childrenswear categories,” he said.
“Our online store’s performance was encouraging and we have significantly increased the number of items now available for purchase. We continue to look at opportunities to communicate Target’s value in unique ways through integrated communication channels.”