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BREAKING: Is KMART to blame for Big W’s mass store closures?

Expert makes shock confession - by Amy Sinclair
  • 01 Apr 2019

On the day that Big W finally confirmed the closure of around 30 stores around the country, a retail expert has revealed his theory on why the retail chain are shutting so many stores. 

David Kindl, chairman of the Retail Doctor Group, says huge competition from the incredibly popular and successful Kmart would’ve contributed to Big W’s falling profits. 

BREAKING: Is KMART to blame for Big W’s mass store closures?

While Big W lost a whopping $110 million in the last financial year and $8 million in the first half of 2019, Kmart has boomed since restructuring to sell designer-like home and fashion items at super low prices. 

Now retail expert Mr Kindl says Kmart’s ability to evolve in recent years and surge ahead would've seen brands like Big W suffer. 

'Kmart has really created a point of difference for themselves - low cost, own brands, fun advertising and great product response,' he told 9Finance. 

'Retailers like Kmart have moved along in the past ten years and retailers like Big W maybe haven't.’

Indeed, Kmart has a legion of fans around the country - with thousands of Aussie mums flocking to social media to reveal their genius hacks and glowing reviews of various Kmart products every day. 

‘Where would we be without Kmart?!’ said one shopper.

Earlier today, Big W confirmed they will take a $370 million hit in closing 30 stores across the country - but maintains that they will do their best to find their employees jobs elsewhere. 

'We understand the impact that the store closures will have on our team and will endeavour to provide affected team members with alternative employment options within the Woolworths Group where possible,' the statement said.  

'This decision will lead to a more robust and sustainable store and DC network that better reflects the rapidly changing retail environment.'  

Amy Sinclair
Amy Sinclair
Amy Sinclair is a contibutor for New Idea Food.

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