Wesfarmers Annual Report 2011 33
More than $400,000 has been raised
through Kmart’s Coin Collection Program
which supports the work of charities
including Variety, the Children’s Charity,
TLC for kids and various local community
groups. In addition, the business
continues to support hundreds of schools,
kindergartens and community groups
through the provision of Kmart gift cards
or products.
A comprehensive review of the business’
Ethical Sourcing Program is being
undertaken. Working closely with the
Target team to ensure that both business
programs are aligned, the updated program
is due to be rolled out by the end of the
2011 calendar year.
Kmart continues to focus its attention on
sustainable purchasing which includes
sourcing ethically, supplier collaboration,
meeting compliance standards, reputation
management and process and reporting
system improvements.
Outlook
As Kmart continues its turnaround,
delivery of low prices and value to
families on everyday items has become
embedded in its business operations.
Customers have continued to respond to
the ‘new Kmart’, with pleasing growth in
customer transactions and volumes. The
ongoing focus during the 2012 fnancial
year is on connecting more customers
with the ‘new Kmart’.
Opportunity remains in having the
right product across the entire store that
connects with the customer, and operating
as effciently as possible, from sourcing to
the shop foor.
While the business continues to be
cautious about the short-term trading
environment, further work to source
product at lowest cost, and a focus on
reducing the cost of doing business,
remains a high priority for the business.
One new Kmart store and six Kmart Tyre
& Auto Service stores are planned to
open in the 2012 fnancial year.
The aim for this past year was to
reduce lost time injuries by 50 per cent.
Unfortunately this target was not met with
the business recording 167 lost time injuries
for the year. This resulted in a 29 per cent
reduction on the previous year.
The main focus areas from an environmental
perspective have been reducing the amount
of energy used and ensuring packaging is
cost effective and meets the requirements
of the Australian Packaging Covenant.
Signifcant improvements to the packaging
of products have been made throughout
the year. Some key highlights include:
• removing backing cards from kitchen
utensils and bath mats, replacing them
with a small sticker
• changing the way Kmart’s Homemaker-
branded kettle is packed to reduce
packaging by 25 per cent
• moving from blister packs for power
leads, power boards and audiovisual
accessories to cardboard packaging
or shelf-ready packaging
• removing the stuffng from footwear
A range of initiatives has been identifed
to reduce energy use including using
natural light and natural ventilation,
introducing more energy effcient lighting
and being able to centrally control when
and where energy is used. These initiatives
will soon be trialled in selected stores.
Initiatives to reduce water consumption
and energy use have been incorporated
in Kmart’s New South Wales and
Victorian distribution centres.
Reusable shopping bags are now made
using 100 per cent recycled material.
Support for the annual Kmart Wishing Tree
Appeal has increased, collecting more than
464,000 gifts, $295,000 in cash donations
and $100,000 from the sale of Wishing
Tree-branded merchandise.
Over 7,800 primary school students
entered the 2010 Kmart’s Art of Giving
competition. To highlight the generosity of
people willing to help others in need, the
2011 competition focuses on ‘why helping
others is important’.
A range of initiatives has been identifed
to reduce energy use.
www.kmart.com.au
www.kmart.co.nz
www.ktas.com.au
Business websites
Main image: Team member Bridget Mace at
the Kmart store in Innaloo, Western Australia