Kmart Director Focusing on Improvement with the Market Addition of Amazon
Kmart Director, Ian Bailey, explained a plan to direct energy towards advancing Kmart in problem areas rather than worrying about Amazon and their effect on the retail market at a recent AmCham event.
Kmart is one of the best businesses in the discount retail market at the moment, after having a large turnaround in the past decade. Bailey believes that Amazon moving to Australia will further encourage them to better their systems rather than viewing them as a problem competitor. Bailey feels Kmart deserves a rating of about “five or six out of ten” so there is still plenty of room for improvement. Kmart will concentrate on improving the quality of products without increasing price as well as developing the delivery process. Bailey also emphasised the importance of listening to the customers as they have more resources now and their “expectations are increasing.”
Bailey is not worried about Amazon and their impact on the retail market. He acknowledged that all retailers will lose some amount of customers but there should not be too drastic an effect. Since the Australian retail market is $300 billion, he claimed that “even if they became a $5 billion business in five years…it’s still only $5 billion, it’s not that much in the scheme of retail.”
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