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How Kmart plans to win back customers after drop in sales

Kmart has hinted at a return to heavy discounting to win back the crowds following a shock sales slump.

Queues have slowed for the first time in years after the chain stopped selling its cheap DVDs and missed the mark on summer fashion.

It’s one of the great retail comebacks of the online era, as boss Guy Russo turned it from drab into fab.

However, Mr Russo has now retired and Christmas was flat with Kmart’s sales slowing while Target’s are growing.

Kmart sales strategy: Kmart is planning to win back buyers after a sales slump.
Kmart is planning to win back buyers after a sales slump. Source: Getty (file pic)

New boss Ian Bailey aims to fix that by devoting more space to kids, expanding its homewares and boosting supply chains so stocks don’t run out.

“Kmart have had that edge in terms of adapting to the millennial market, if you like,” Jessica Sinclair of Retail Oasis said.

When it comes to retail, Target has turned a corner and Big W is rebuilding, while all the discount stores try and fight the online threat.