Hannah Boland
Mon, August 28, 2023
Kmart, Australia’s biggest non-food retailer, plans to expand into the UK and French markets - Jin Lee/Bloomberg News
An Australian discount retailer is plotting a push onto Britain’s high streets as it looks to seize on the collapse of Wilko.
Kmart is understood to have initiated talks with major UK supermarkets in the past few months over deals to replace retailers’ existing pet, toy or homeware products with its Anko-branded versions.
The chain, which is owned by the Australian conglomerate Wesfarmers, is discussing partnerships which would see it manage the non-grocery divisions of supermarkets through its Anko Global business. This would free up a supermarket to focus solely on its food operations, which many have been forced to divert more attention in recent months to deal with inflationary pressures. It is thought an initial deal could cover a specific category, such as accessories. Talks are at an early stage and a tie-up is not imminent.
The UK is understood to have been identified as a key early market for Kmart, alongside France, where it is also holding talks with retailers. Its preference is to partner with existing retailers in the countries rather than open its own stores.
Kmart is Australia’s biggest non-food retailer, generating more than $A10bn (£5bn) in revenues last year. Around 85pc of the range stocked in Kmart is its Anko own-brand. It has recently agreed a deal to supply its range into Target stores in Australia. The Australian business is separate from the US Kmart chain.
Arjun Puri, chief executive of Anko Global, said: “We know from our conversations with retailers around the world that they are looking for solutions to their non-core categories.”
It comes as the future of Wilko hangs in the balance after it fell into administration earlier this month.
PwC, which is acting as administrator for Wilko, last week warned that many stores were likely to close as it races to find a buyer.
It said interested parties were not discussing taking over the whole Wilko group, instead looking to buy part of the business.
Doug Putman, the Canadian owner of HMV stores, late last week emerged as a potential last-minute bidder for Wilko, although he is understood to not be looking to buy all the 400 stores.
Other interested bidders have expressed an interest in buying only a handful of stores, with a small number looking to buy more than 50 sites.
Private equity group M2 Capital is said to have made a £90m bid for the retailer, the Guardian reported.
Robert Mantse, the investment company’s managing director, told the BBC the firm would “guarantee all employees’ jobs for two years”, should its bid for Wilko be successful.
PwC said “talks are continuing with a number of parties” but declined to comment on interested parties.
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