Kmart launches new concept store to rival IKEA

Kmart is taking on homewares giant IKEA with its newest offering.

The Australian retailer has announced a new standalone concept store, called K Home, in Melbourne’s east, trialling an attempt to rival the Swedish brand Down Under.

The popular discount chain will fill the store with its Anko-branded items and showcase them across the former Decathlon site in Box Hill South.

Across the 3800-square metre space, there’ll be immersive room displays and curated furniture collections.

It will also house large furniture that was previously only available for purchase online, allowing consumers to touch and test the products.

There will also be home styling ideas and the store will feature items not available in traditional stores.

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It’s anticipated the Melbourne store will be a trial to see if the room-based displays of its popular ranges can be a separate retail format for the company.

The furniture and interiors market is estimated to be a $27.5 billion industry, according to the Australian Financial Review, with Kmart looking to expand its local foothold.

Callum Smith, Kmart’s chief commercial officer, hopes the new store will help the company “better understand how customers shop” its products – especially those previously unavailable in stores.

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“At a time when value matters more than ever, this trial is about helping Australian families create a home they love at a price they can afford,” he said.

Doors for the new store open on June 18 and experts say it could disrupt the market, not just for IKEA but also local brands like Amart Furniture and Freedom.

“The space has been designed differently from a traditional Kmart store, with a more immersive home environment, curated displays and room-based inspiration to help customers explore the range in a more intuitive way,” Smith said.

“Customers have embraced Kmart’s home range for many years, and we’ve continued to grow our furniture offer as customer demand has grown.”