Kmart Home: Inside K Home, the New Budget Homewares Store Taking Aim at Australia’s Furniture Market

Kmart is moving deeper into Australia’s home and furniture market with the launch of its first dedicated K home store, a new retail format designed to bring the company’s budget homewares, furniture, decor and storage range into a more immersive showroom-style environment.

The first K home store opens at 249 Middleborough Rd, Box Hill South, in Melbourne’s east. It marks a significant shift for Kmart from a general discount department store model into a more specialised homewares and furniture concept, placing the retailer in sharper competition with established players in big-box furniture, flat-pack living, home organisation and affordable interior styling.

For shoppers searching for “Kmart home,” “K home,” “Kmart home store,” “Kmart homewares store,” “K home store” or “Kmart furniture store,” the new format represents more than another branch opening. It is a test of whether Kmart can convert the popularity of its Anko home range into a standalone destination for Australian households trying to furnish, refresh or organise their homes without committing to expensive big-ticket purchases.

A New Store Format Built Around Budget Living

The K home store is being launched as a pilot, not yet as a confirmed national rollout. But its ambition is clear: Kmart wants to give budget-conscious shoppers a physical place to browse furniture and homewares that have often been difficult to display inside regular Kmart stores because of their size.

The more than 3000-square-metre store in Box Hill South is a former Decathlon sporting goods store. It is slightly smaller than a standard Kmart store, but far smaller than a typical IKEA, which spans more than 28,000 square metres. Despite that difference in scale, K home is designed to compete in the same broad customer mindset: shoppers furnishing apartments, styling living rooms, organising kitchens, refreshing bedrooms and comparing affordable home products in person before buying.

Inside the store, customers will find Kmart’s Anko furniture range grouped with bedding, decor, storage, cleaning products, organisation items, kitchenware, cookware and lifestyle products. The format includes self-service checkouts, dedicated product zones, room-style displays and curated settings showing how low-cost furniture and decor can work together in a real home.

A $19 side table, a $599 three-seat sofa, 75¢ candles and $300 vacuum-packed sofas are among the price points used to define the offer. The range also includes items such as pillows, bed frames, microwaves, lamps, baskets, storage solutions and home styling accessories.

Why Kmart Is Opening a Homewares Store Now

K home arrives during a cost-of-living squeeze, when many Australian households are reassessing how much they can spend on furniture, decor and household essentials. The store targets renters, first-home buyers and families who want practical, stylish home updates without major renovation costs or premium furniture prices.

Kmart & Target general manager of store experience Courtny Keeble said value was driving demand for the retailer’s home range.

“Value has always been central to what Kmart offers, and right now it matters more than ever,” Ms Keeble said.

“Customers still want to create homes they love, but they’re looking for ways to do that without compromising on quality or style.

“We’ve seen continued demand for affordable furniture, storage and home styling solutions, and K home builds on that by bringing more of our home range together in one accessible location.”

That strategy reflects a broader shift in retail: homewares are no longer just add-on purchases near the back of a discount department store. For many shoppers, furniture, storage and decor are now researched, compared and styled in the same way fashion once was. Social media, rental living, compact apartments and the rise of affordable interior styling have all increased demand for accessible, flexible home solutions.

Bringing Online-Only Furniture Into a Physical Showroom

One of the most important functions of the new K home store is that it brings selected furniture and storage products that were previously available only online into a physical setting.

Kmart’s general manager of store experience Courtny Keeble said the K Home store would “bring Kmart’s online homewares offering to life”, allowing customers to touch, feel and experience products that had previously been unavailable in store because of their scale.

That matters in furniture retail. A shopper may be willing to buy candles, storage tubs or cushions online with minimal hesitation, but sofas, bed frames, desks, chairs and larger storage units are different. Customers often want to assess size, material, comfort, proportions and build before committing.

K home is designed to close that gap. Shoppers can sit on sofas and desk chairs, compare room settings, view storage units in context and see how smaller decor items pair with larger furniture pieces. Larger flat-pack products can be collected from an area called Furniture Hub.

Kmart Group managing director Aleks Spaseska said K home would sell flat-pack and compression furniture, including products that were often too big to display in normal stores.

“Think three-seater couch in a small box, and you take it out, and it expands into a three-seater couch,” she said.

According to Spaseska, about half of Kmart’s furniture range was previously sold only online.

Anko Takes Centre Stage

The K home store is built largely around Anko, Kmart’s own brand that has become central to the retailer’s home, lifestyle and everyday goods strategy. The Box Hill South store will feature Anko exclusively on the shop floor, with only a handful of other brands stocked near the checkout.

Anko evolved from its origins in 2019 as Kmart’s in-house sourcing division and has become one of the key engines behind the retailer’s price-led growth. Investment bank Jarden has estimated Anko could be worth more than $20 billion, with turnover estimated at $10 billion.

Spaseska said product innovation through Anko Global has helped Wesfarmers-owned Kmart bring low prices to popular home and furniture categories.

“We’ve been working with our supplier base to really innovate around how we can bring extreme value price points to market within our furniture offer, and we’ve seen a really strong customer response to that online,” Spaseska said.

The new K home store does not rely on previously unavailable Anko products. Its point of difference is presentation. The store is intended to show shoppers how existing products can be styled, combined and used in full-room concepts.

In regular Kmart stores, space constraints can make that difficult. K home gives the retailer more room to create living-room displays, bedroom ideas, storage zones and home organisation layouts that encourage customers to imagine products in their own homes.

“Everything we did was about how do we get our products on show, and then be able to create these moments where it really comes to life,” said Courtny Keeble.

“It’s all the stuff we’d love to do better in Kmart. We just don’t have the space.”

What Shoppers Will Find Inside K Home

The first K home store is designed around home categories rather than the full general merchandise mix found in a traditional Kmart. Customers will not find apparel, footwear, fashion accessories or toys. Instead, the store is focused on the home environment.

Major categories include furniture, storage, decor, bedding, home styling, organisation, cleaning, kitchenware, cookware and selected lifestyle items such as travel products.

The store uses curated displays to show how budget furniture and decor can be combined. A living-room setup welcomes shoppers near the entrance. Smaller items such as crockery and storage products are displayed on shelves in a format familiar to regular Kmart customers, while larger furniture pieces are shown in room-style arrangements.

Ms Keeble said the range had been developed for Australian shoppers broadly, rather than one local market.

“The range has been developed for Australian customers broadly, and reflects trends we’re seeing right across the country,” she said.

“Customers are consistently looking for affordable, practical and stylish solutions for their homes, whether that’s storage, furniture, home styling or organisation.”

She also said many shoppers are looking for ways to update homes without significant expense or renovation.

“Categories like storage, decor, bedding, furniture and organisation are popular because they allow customers to update a space without significant expense or major renovation,” she said.

The Bigger Market Kmart Wants to Capture

K home is not just a new store. It is a strategic move into a large and competitive market.

Wesfarmers is one of Australia’s top 10 companies, generating total sales each year of just under $46 billion. Its retail operations include Bunnings Warehouse, Target, Officeworks and Priceline Pharmacy. Kmart generated revenue of $11.4 billion in the most recent financial year.

Wesfarmers estimates that Kmart sales account for about 10 per cent of Australia’s $34 billion home and living market. Kmart is also pushing further into the $27.5 billion furniture and interiors market, where competitors include IKEA, Harvey Norman, online marketplaces, furniture chains and even Bunnings in outdoor products.

Ben Gilbert, head of research at broker Jarden, said Kmart has become a key part of Wesfarmers’ growth and estimated that it now represents more than 25 per cent of the conglomerate’s valuation.

“This furniture shop is the next step in the evolution of the Anko brand, providing another growth leg combined with overseas expansion in the US and store rollout in the Philippines,” he said.

Gilbert said K home could compete against stores selling furniture such as IKEA and Harvey Norman, as well as Bunnings in outdoor products.

“It has broad demographic appeal, which means that people would be happy to brag about having a $12 Anko lamp next to a $20,000 couch,” he said.

A Direct Challenge to IKEA — But With a Different Model

K home is widely being viewed as Kmart’s challenge to IKEA, but the two models are not identical.

IKEA is known for huge destination stores, room walkthroughs, flat-pack furniture, food courts and a deep catalogue of furniture and household goods. K home is smaller, more tightly edited and built around Kmart’s existing Anko product base. There is no Swedish meatball moment, no massive warehouse maze and no full IKEA-scale product universe.

Instead, K home appears to be designed around convenience, price and familiarity. Kmart already has a broad national customer base, strong brand recognition and a reputation for affordable home basics. The K home experiment asks whether shoppers will also trust the retailer for bigger furniture decisions.

The store’s smaller size could become an advantage if the format is rolled out. It may be easier to place K home stores in suburban retail locations than to replicate the footprint of large-format competitors.

Expansion Plans Remain Dependent on the Trial

Kmart has not confirmed whether K home will be rolled out nationally. The Box Hill South store remains a trial, and future decisions will depend on performance.

Keeble said “foot traffic, sales and broader customer response” would be key measures of success. She did not disclose sales targets for the store, which has been secured through a multi-year lease.

Spaseska said she saw room for 50 K home stores across Australia and New Zealand, but that expansion would depend on the success of the Melbourne trial.

“We think it’s an opportunity for both markets, not just Australia, but clearly access to real estate over time will be a driver,” she said.

That comment highlights one of the major constraints facing any new retail format: property. A concept like K home needs enough space for displays, storage, bulky goods handling and customer flow, but it also has to secure sites at commercially viable rents in the right suburban catchments.

The Customer K Home Is Trying to Reach

The early target customer is not difficult to identify. K home is built for shoppers who want the look of a styled home without the price tag of premium furniture retailers.

That includes young families, renters, students, first-home buyers, apartment dwellers and anyone refreshing a space on a limited budget. It may also appeal to shoppers who enjoy mixing inexpensive decor with more expensive pieces.

Retirees Frances James, 68, and Gary James, 71, from Malvern, arrived to shop for their 39-year-old daughter but came a day early.

“I think it’s the cost factor. Kmart’s very good at doing copies of the good furniture, and it’s for my daughter. She’s younger, so it’s more affordable for her,” Frances said.

“She’s got two young children, she’s very practical, and she’s not as precious, so even though you know it’s not going to last, you don’t mind spending.”

That comment captures both the attraction and the tension in Kmart’s low-price home strategy. Affordability is the draw. Durability, sustainability and product life cycle may become part of the debate.

Concerns Over Market Power and Sustainability

The launch has generated social media interest, but not all commentary has been celebratory. Retail expert Lisa Asher from the University of Sydney Business School raised concerns about the growing size and influence of Wesfarmers in Australian retail.

“I do not agree with how they remove competition from markets, then only see their obligations to shareholders,” Asher said.

She also criticised the broader low-cost manufacturing model behind cheap consumer goods.

“By outsourcing (manufacturing) to developing nations, which have very low labour laws and environmental protections, means we are polluting and exploiting those nations and people by purchasing these products.”

Asher called for more transparency in sourcing, including where products are made and by whom. She also raised concerns about environmental damage and sustainability.

“If greater transparency on sourcing was required under consumer law in Australia, it would fundamentally shift the low quality disposable products we pay only a few dollars for from Wesfarmers.”

These concerns point to a wider challenge for budget retailers. Low prices are attractive during a cost-of-living crisis, but consumers, regulators and experts are increasingly scrutinising supply chains, labour standards, product durability and waste.

For K home, the question may not only be whether shoppers like the look and price of the products. It may also be whether Kmart can convince customers that affordable furniture can be practical, stylish and responsible enough for long-term trust.

Why the Box Hill South Trial Matters

The first K home store matters because it tests a retail idea at the intersection of several powerful trends: budget shopping, home improvement, apartment living, online-to-offline retail, flat-pack furniture and brand-owned product ecosystems.

Kmart already has a strong foothold in affordable homewares. What K home changes is the shopping experience. Instead of asking customers to imagine how an online-only storage unit, sofa or bed frame might work in their home, the retailer is giving them a showroom environment where the products can be tested, compared and styled.

If the trial succeeds, Kmart could create a new growth channel for Anko, deepen its share of the home and living market and place more pressure on furniture competitors. If it struggles, the company may still learn valuable lessons about showroom design, bulky goods, customer behaviour and the limits of discount department store expansion.

The Future of Kmart Home and K Home Stores

The future of K home will depend on whether customers treat it as a genuine furniture and homewares destination rather than simply a larger Kmart home section.

Key indicators will include store traffic, conversion rates, sales of larger furniture items, customer response to room displays, demand for online-only products in physical settings and whether the model can be replicated in other locations.

The concept also raises a broader question for Australian retail: can a discount retailer use a trusted private-label brand to move from everyday basics into bigger lifestyle categories?

For Kmart, the answer may depend on Anko. The brand has already become a major part of the company’s growth story. K home is the next test of how far that brand can stretch — from candles and cushions to sofas, bed frames, storage systems and full-room styling.

Conclusion: Kmart’s Home Ambition Gets a Physical Address

Kmart’s first K home store in Box Hill South is more than a new retail experiment. It is a clear statement that the company sees homewares and furniture as a major growth opportunity.

By combining Anko products, budget price points, curated room displays and a physical showroom for bulky online items, Kmart is attempting to meet shoppers at a moment when affordability matters deeply. The format is designed for renters, families, first-home buyers and practical decorators who want style and function without premium pricing.

But the opportunity comes with pressure. Competitors will be watching closely. So will customers concerned about quality, durability, sourcing and sustainability.

For now, K home gives Kmart a new way to compete in the home and living market. Whether it becomes a national network of Kmart home stores will depend on how Australian shoppers respond to the Box Hill South trial.