👉 Background: Kmart is owned by the Kmart Group, which also runs Target and the Anko brand. And Kmart Group is owned by Wesfarmers - the group that also owns Bunnings, Officeworks, Priceline and a whole lot more.

👉 What happened: Wesfarmers' new MD for the Kmart Group who joined April this year announced grand plans to double Kmart’s sales to $20 billion in 10 years. The plan is to expand Kmart's online sales and focusing on younger shoppers. But, one of the key drivers is expanding internationally, particularly Anko itself as stand-alone brand.

👉 What else: In fact, Anko is already planning to have five stand-alone stores in the Philippines by year’s end, and then also expanding partnerships into Walmart Canada and European giant Action. The juiciest part is that the new MD is also planning for $2 billion in profit too - which is a 10% profit margin.

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What's the key learning?

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💡In retail, it’s not just about how much stuff you sell. It’s how fat your margin is when you sell it.

💡Most big retailers run on razor-thin margins:

• Coles’ profit margin was 2.6% last year
• JB Hi-Fi’s was 4.6%
• And Myer’s profit margin was around 1.6% last year

The key to bigger margins? Home brands, like Anko. It means that Kmart doesn’t have to share profits with suppliers.

💡By selling Anko overseas, Kmart is aiming to scale those higher-margin products globally. But it's just not overseas because Anko now makes up 85% of Kmart sales in Australia too. So Kmart's private label is becoming the cornerstone to its revenue and profit success.