Australian retailer plans to attract UK shoppers after Wilko collapse

Kmart, Australia's largest non-food retailer, plans to expand into the UK and France markets. Credit: Jean Lee/Bloomberg News

Australian discount retailer is plotting a crackdown on the UK's main streets, hoping to exploit Wilko's collapse.

Kmart has been rumored to have initiated talks with major UK supermarkets over replacement deals over the past few months. existing pet, toy, or home goods retailers with their Anko-branded versions.

The chain, owned by Australian conglomerate Wesfarmers, is discussing a partnership where it will be able to operate the non-food department of supermarkets through its Anko Global business. This would allow the supermarket to focus exclusively on its food business, which many have been forced to divert more attention to in recent months in order to cope with inflationary pressures. It is assumed that the initial transaction may cover a certain category, such as accessories. Negotiations are at an early stage and their consolidation is not inevitable.

The UK is believed to have been identified as a key early market for Kmart, along with France, where it is also in talks with retailers. The company prefers to partner with existing retailers in countries rather than open its own stores.

Kmart is Australia's largest non-food retailer with over A$10 billion (£5 billion) in revenue last year. About 85% of the assortment presented at Kmart belongs to Anko's own brand. The company recently closed a deal to supply its range to Target stores in Australia. The Australian business is separate from the American Kmart chain.

Arjun Puri, CEO of Anko Global, said: “From our conversations with retailers around the world, we know that they are looking for solutions to their problems. major categories.»

This is because Wilko's future hangs in the balance after the company was taken over by management earlier this month.

PwC, which serves as Wilko's administrator , last week warned that many stores were likely to close as the company rushes to find a buyer.

The company said that interested parties are not discussing the acquisition of the entire Wilko group, but instead want to buy part of the business.

Doug Putman, a Canadian owner of HMV stores, emerged as a potential bidder to buy Wilko at the end of last week. last minute, although it is not expected to buy all 400 stores.

Other interested bidders have expressed interest in buying only a few stores, with a small number wanting to buy more than 50 properties.

Private equity group M2 Capital tells the Guardian it has offered £90m to the retailer.

Robert Manze, the investment firm's managing director, told the BBC the firm «guarantees jobs for all employees for two years». if its bid to buy Wilko is successful.

PwC said «discussions are ongoing with a number of parties» but declined to comment on stakeholder information.