Kmart boss says chain won’t stock Australia Day products – even if date changed

The managing director of Kmart has made a big – and potentially controversial call – about Australia Day as Woolies is targeted.

The boss of Kmart has weighed into the furore surrounding the axing of Australia Day merchandise by several major retailers – and it could prove controversial.

This month Woolworths Group said neither Woolies nor Big W would stock products specifically marking Australia Day due to declining demand and “broader discussions about January 26 and what it means to different parts of the community”. Although Big W will continue to sell Australian flags.

The German owned Aldi chain then said it would follow suit.

Leader of the Opposition Peter Dutton called for a boycott of Woolworths and a number of its supermarkets have been vandalised since the retailer made the announcement.

Kmart hasn’t stock Australia Day merchandise for two years. NCA NewsWire / Dean Martin

No Australia Day products – even if date changed

Kmart has largely managed to stay out of the Australia Day fray; that’s despite it ceasing the sale of Australia Day merchandise last year.

But talking to news.com.au, Ian Bailey, managing director of Wesfarmers’ Kmart Group which also includes Target, said the discounter wouldn’t bring back Australia Day products even if the date was changed from January 26 adding that, in terms of customer pushback, there had been “nothing”.

Australia Day marks the day in 1788 when the Union Flag was first raised at Sydney Cove ushering in British colonial rule. Some Indigenous Australians refer to the date as “Invasion Day” and there have been repeated calls to keep the celebration but change the date.

Australia Day merchandise at a shop in Brisbane. Picture: NCA NewsWire/Tertius Pickard

“(The date) is not the issue,” Mr Bailey said at the US National Retail Federation’s 2024 Retail Big Show event in New York.

He added that the number of shoppers wanting January 26 paper plates, bunting, clothes and other memorabilia was “less than it used to be”.

“There’s not enough demand in that one day to justify bringing products back,” he said.

“We carry (Australia themed products) 365 days a year anyway.”

A look at the Kmart website showed products including books on Australian wildlife, green and gold footballs with the word “Australia” on them, kangaroo toys and kids’ books on Indigenous culture. Although, unlike Big W, there do not appear to be Australian flags for sale.

Kmart Group managing director Ian Bailey.

‘There’s been nothing’

While there has been some backlash against Woolies, Mr Bailey said the retailer had seen no discernible customer anguish over its decision to axe the Australia Day range.

“We have so many customers, we’re always going to get comments on any given topic at any time,” he said.

“But in terms of any groundswell of any of any magnitude, there’s been nothing. It was never a big promotional day where we saw a surge in sales.”

The Kmart managing director wouldn’t be drawn on Mr Dutton’s call for Woolworths to be boycotted over its similar stance.

“I try to keep out of politics,” he said.

Researchers YouGov said this week that only 20 per cent of more than 1500 people polled supported Mr Dutton’s boycott call.

Woolworths has suffered an Australia Day backlash.

Kmart ‘please explain’

Last year, a Sydney shopper demanded on social media that Kmart “please explain” why there were no Australia Day themed “clothes, decorations and plates” in stores.

“Please do not say they do not have the room as they have no trouble finding room for the American custom of Halloween,” the shopper said.

Facebook posts from 2014 to 2016 show the Melbourne based retailer did indeed once promote items including dresses, shorts and shirts emblazoned with the Australian flag during January.

In 2023, the company said those ranges were no longer stocked.

“We respect that the 26th of January means different things to different people and we aim to foster an environment that is inclusive and respectful of both our customers and teams,” a Kmart spokesman said last year.

“It is for this reason that we will also be giving all of our team members the choice of whether or not they work that day, with the option to substitute for another day.”

Aldi found itself in hot water a few years back when it sold a T-shirt for Australia Day that suggested Australia hadn’t existed pre-colonialism.

Woolies’ woes

Woolworths’ decision this year has led to anger, even violence, from some.

Two branches of Woolies in Brisbane were vandalised following the firm’s announcement.

Last week, messages including “Boycott Woolies now … people power,” and “Aussie Aussie Oi Oi,” were daubed on supermarkets in Cleveland and Teneriffe.

Police arrested a 40-year-old man from Ormiston in connection with the vandalism.

There have also been debunked claims that Woolworths’ share price has suffered due to its stance. While its shares have fallen by around 2 per cent in a month, the share price of Coles has fallen by more.

Earlier this month, Woolworths said it had scrapped specific Australia Day merchandise, similar to Kmart, due to dwindling demand.

“We know many people like to use this day as a time to get together and we offer a huge variety of products to help customers mark the day as they choose,” a spokesman said.

“Woolworths and Big W celebrate the best of Australia every day, and we’re proud to support the farmers, producers, and suppliers who work with us.”

Aldi followed suit a day later. While it has previously stocked a wide range of Australia Day themed goods as Special Buys, it says it no longer will.

Rival Coles has said it will stock a “small range” of Australian-themed summer entertaining merchandise during January.

“It is popular with our customers for sporting events such as the cricket and tennis, as well as for the Australia Day weekend,” a Coles spokesman said.