Kmart and Target CEO John Gualtieri reveals new trends in shopping coming in 2025

Discount chains Kmart and Target saw huge demand this festive season for goods appealing to both kids and adults – and expect more “big trends” in the new year.

The growing global ‘Kidult’ market helped propel Aussie retailers in their fight against online platforms Temu and Shein this festive season.

Discount chains Kmart and Target saw huge demand for goods appealing to both kids and adults.

“There’s a big craze on adults toys, whether it’s consumables, whether it’s plushies, whether it’s electronics – big trends that are coming through as we go into the next 6-12 months that will keep our customers excited,” chief executive John Gualtieri said.

Kids toys remained the most popular category for Kmart and Target throughout the Christmas period – and, interestingly, demand for matching holiday family pyjamas doubled.

Kids toys remained the most popular category for Kmart and Target throughout the Christmas period.

Australian Retailers Association (ARA) Chief Industry Affairs Officer Fleur Brown said festive-season sales were expected to finish up 2.7 per cent on last year, as shoppers spent a collective $69.8 billion.

Mr Gualtieri said Kmart and Target’s more than a million app users were combining modern technology with traditional – finding the goods online, then opting to click-and-collect in store.

Ms Brown said “despite the increasing popularity of online shopping, we know that up to 80 per cent of shopping sales happen in brick and mortar stores”.

“Aussies truly love their shopping and see it as much as an experience as a necessity. At the end of a tough year, retail therapy can be a popular outing to bring on the peak season vibes.”

Kmart and Target chief executive John Gualtieri.

Mr Gualtieri said “big trends” were expected across Kmart and Target in the new year.

“Kmart strategy is an everyday low price strategy dominated by the Anko brand and that’s been the same, so consistency in our approach is really important,” he said.

“The work that we’ve been doing with Target and the elevated quality, you’ll start to see significant shifts in the offer we have in Target around apparel and soft home[wares].”

Mr Gualtieri said this was especially important in the fight against cheap, online products on sites like Temu and Shein.

The stores will also look to its ‘Fanzone’ initiative, which allows customers to support their favourite sporting teams with affordable merchandise.

Originally published as Kmart and Target CEO John Gualtieri reveals new trends in shopping coming in 2025