Kmart is one of Australia’s largest retailers, with 190 stores throughout Australia and New Zealand, product sourcing offices in Hong Kong, China, Bangladesh and India, and more than 31,000 team members. Kmart carries a range of general merchandise and apparel products and is focused on ensuring families come first for the lowest prices on everyday items.
Kmart Tyre & Auto Service is one of Australia’s largest retail automotive service, repair and tyre businesses, with a network of more than 260 stores.
Our total divisional revenue this year was $4.2 billion.
We continue to trial initiatives to reduce the amount of energy used to heat and cool our stores. Results continue to be positive with the business expanding a trial to two more stores to assess this initiative further. Over the coming months, we plan to review the results of these trials to inform the scaling up of this initiative. In addition, we have undertaken a review on a range of energy efficiency initiatives and selected those that show potential suitability for stores. The business is now working though these initiatives in further detail and aims to trial them over the coming year.
Buyers and planners are key roles in our business. This year, we have formalised a merchandise development program for trainee buyers and planners, aiming to increase our internal recruitment of buyer and planner roles from 20 per cent to 80 per cent by 2015. The program utilises facilitated learning, online training and coaching to ensure participants in these programs receive everything they need to be successfully promoted to buyer and planner roles.
We have continued to strengthen our commitment to ethical sourcing throughout the year, with strong progress achieved on ensuring overseas factories that directly supply the business have been audited to Kmart standards. We plan to ensure all factories have been audited to our standards by the end of the 2013 calendar year.
In addition, we are committed to improving safety in all factories. In January this year, we conducted fire safety audits in all of our supplier factories in Bangladesh. These audits revealed some factories in high-risk environments, such as those located above market places or in multi-storey buildings. We have decided to exit these factories with no new orders being placed. For factories with lower-risk issues, we issued corrective action plans with a second round of audits conducted in May to check compliance with these plans. We have signed the Accord on Fire and Building Safety in Bangladesh and we continue to work closely with all stakeholders to ensure compliance with local requirements.
More information on sustainability at Kmart is available at www.kmart.com.au/social-responsibility.