Kmart is emerging as a significant threat to other online marketplaces in Australia, according to a recent investor note from Jarden. The retailer’s expansion and competitive pricing strategy have led to a 72 basis point increase in cross-visitation across its categories in the last six months.
Kmart’s Rising Popularity
Jarden’s analysis reveals that Kmart’s cross-visitation growth is particularly notable when compared to other retailers. Temple & Webster and JB Hi-Fi saw the largest increases, with 236 and 214 basis points respectively. Over a longer 25-month period, Baby Bunting and Big W had the highest cross-visitor rates to Kmart, at 21.9% and 28.9%.
This shift in consumer behavior coincides with the growing dominance of online platforms in Australian retail. In the June quarter, these platforms generated $5.1 billion in sales, making them the largest retail channel and the second-fastest growing, with a 17% year-on-year increase.
Amazon’s Lead and AI’s Impact
While Kmart is making strides, Amazon remains the leader in marketplace growth. Jarden predicts that Amazon will continue to gain market share, a trend that will be accelerated by AI and the increasing use of agentic shopping. Despite this, clothing as a category at Amazon has the lowest average cross-visitation, at around 28%.
The analysis also highlights the varying levels of risk for different retailers. Big W, Harvey Norman, Baby Bunting, and Temple & Webster have the highest cross-visitation scores with Amazon, while Shein, Temu, and Myer are less affected.
Cross-Visitation Trends Among Australian Retailers
Temple & Webster, Kmart, and Temu saw the highest increases in visits to Amazon over six months, with respective rises of 106, 62, and 60 basis points.
Conversely, Myer, Shein, Big W, and Harvey Norman experienced declines in cross-visitation during the same period, dropping by 82, 84, 51, and 33 basis points, respectively.
In specific categories, Baby Bunting saw a 42 basis point decline in cross-visitation to other marketplaces in the baby category, while Myer experienced a 41 basis point drop in home and household goods. Temple & Webster, however, saw a 40 basis point increase in visits to other marketplaces.
Clothing Category’s Surge
Jarden’s note emphasizes the clothing category’s significant growth in cross-visitation. When comparing 6-month to 12-month periods, clothing saw the largest increase. Shein’s cross-visitation rose by an average of 217 basis points, driven by Temu’s increases.
Kmart’s success is further evidenced by its website traffic. In August, the retailer experienced a near 25% year-on-year jump in visits, reaching 26.46 million. This places Kmart as the third most-visited retail website in Australia, behind Bunnings and Amazon.