Kmart Westgate: New Zealand’s largest store to open with new Plan C+ format

Central to the new format is the location of the checkouts, which, rather than being in the centre of the store as they normally are, are next to the exit.

Kmart Group general manager of property Ben Smith says the business plans to roll out the Plan C+ format to more stores in future. Photo / Alyse Wright

Kmart Group general manager of property Ben Smith said the format was designed to be more intuitive for customers.

“We tried to create a store that our customers want to love and enjoy, and one of the things that we knew was key was to expand our womenswear department, expand our beauty department, and make it a real destination experience,” Smith said.

“When we do all of those things for our customers, what we need to do is make sure that the final moment is as painless as possible, so bringing the checkouts to the front makes a lot of sense from a store layout perspective.”

With repositioned checkouts, the store also offers Kmart more opportunity to expand other ranges, and the company has introduced new technology to complement it.

Kmart in New Zealand and Australia have already adopted new technologies, including an automated, radio-frequency identification (RFID) robot called Tory.

Tory scans RFID signatures associated with each product in a store to identify where stock is needed.

It currently operates in Kmart’s fashion and bedding departments, but the company was exploring how it could expand its use for general merchandise.

The Westgate store also introduces new kiosks for larger items, such as outdoor equipment and nursery products.

Kmart’s robot inventory assistant Tory. Photo / Alyse Wright

Instead of taking up large amounts of space on the shop floor, customers will now browse those larger items through kiosks, and once they’ve decided on an item, they’ll receive a ticket to collect it from a collection zone.

With about 40,000 stock keeping units (SKUs) in store, Smith said prioritising smaller merchandise and other departments allowed more items on shelves.

The Westgate store also introduces a dedicated service desk separate from the checkouts, giving customers a direct channel for click and collect orders, returns and warranties.

A key addition to Kmart’s new Westgate store is kiosks for larger items, such as outdoor equipment and nursery products, which mean more room on the floor for smaller merchandise.

Kmart New Zealand country manager Craig Baxter said the business had delivered a good financial result over the past year, driven by a focus on value for customers.

“The good results come from the offer that we provide our families around New Zealand. I think in these times the price points that we’re hitting, the great product that our buyers are buying, it’s a credit to the whole team,” Baxter said.

“We focus on value for our customers, and so in these tough times being able to come to Kmart and buy something that’s really cool looking, that’s got extra flair to it and is on trend and at the right price, that’s the part we play in the community.”

Kmart New Zealand country manager Craig Baxter says the business’ results are connected to its offering to customers. Photo / Alyse Wright

The opening of the Westgate store takes Kmart’s New Zealand store network to 28 stores.

Smith has been with the company for more than 20 years, and has seen its New Zealand store count more than double in that time.

While he was confident future stores would be constructed around the Plan C+ format, and some potentially refurbished, he could not commit to how many stores were in the pipeline, nor their locations.

“Westgate’s been a key gap for us from a network perspective for quite some time, and customers have been having to drive some distance down to Henderson or up to Albany. This is a huge growth area in the northwest of Auckland, and I think this will be really well placed to serve the community.

“We think New Zealand’s a fantastic place for Kmart and we’d love to open plenty more stores. We’ve got a lot of network gaps both in the North and South Island. We haven’t announced any new stores yet, but we do have a few more in the pipeline which we look forward to announcing very soon.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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