Kmart is weighing the possibility of opening a furniture-only K Home store in New Zealand, following the launch of a smaller format trial store in Melbourne focused on homewares and furniture.
The retailer has not confirmed plans for a New Zealand location, but its managing director has said the chain could support up to 50 K Home stores across Australia and New Zealand if the Australian trial proves successful.
The move comes as IKEA's Auckland store attracted more than 1.7 million visitors in its first six months after launching in late 2025. IKEA's metrics for customer consideration and use rose five percentage points over recent months, while the proportion of consumers who prefer shopping at Kmart fell four percentage points to 19%. IKEA's consumer preference sits at 17%.
Sam Brough, head of brand at Tracksuit, said IKEA is applying pressure on Kmart despite the latter retaining 90% brand awareness among New Zealand consumers. Brough suggested a K Home rollout in New Zealand could serve as a defensive strategy against IKEA's expansion.
Retail consultant Chris Wilkinson of First Retail Group said a K Home format could work in built-up areas that lack space for full-size Kmart or IKEA stores. Kmart's existing stores are typically located in bulk retail zones less accessible to apartment dwellers and city centre residents, while more people are living in urban centres and relying on public transport.