Discount retailer Kmart has emerged as the star performer among Wesfarmers’ stable of businesses, helping the West Australian conglomerate post a rise in profit and pay a bigger dividend despite a weak year for energy, chemicals and mining.

Kmart Group, which also operates the Target chain, posted a big rise in sales and earnings as shoppers facing higher mortgage payments, rents and utility bills sought cheaper products. In particular, Kmart has been successful in expanding its Anko product range, which it designs and distributes to its stores and others.