Kmart Group boss Ian Bailey steps down to take on new inaugural chair of Anko Global

With plans to make its powerhouse brand Anko into a truly global supplier, current boss of Kmart Group Ian Bailey will step down and into a newly created chairman role.

Ian Bailey, current group MD of Kmart Group, will retire to be the new chairman of Anko.

Wesfarmers is building a deeper organisational structure around its blockbuster private label consumer brand Anko as it pursues global expansion including new supply deals with major US retailers and exploring joint ventures from the Philippines to France.

As part of those building blocks to transform Anko brand of homewares, clothing and toys sold in Wesfarmers chains Kmart and Target every year, into a truly global supplier the current boss of Kmart Group Ian Bailey will retire in April to take up the newly created role of chairman of Anko Global.

Mr Bailey has led Kmart Group, which also owns Target, for more than six years and has helped transform the general merchandise retailers into key earnings drivers for the Perth-based conglomerate.

He will be succeeded at Kmart by Aleksandra Spaseska, Kmart Group’s current chief financial officer.

Anko branded products dominate the retail landscape in Australia.

Under Mr Bailey’s watch he has also rapidly grown Anko, which is part of the Kmart Group, to take it into new markets, forge new supply deals and turn the private label brand into a dominant seller of homewares, clothing and other consumer goods. More than 1 billion Anko items are sold each year in Australia. Anko has the No.1 market share of any business in womens­wear, menswear, children’s wear, home and toys and is the No.1 or No.2 Australian market leader in every category.

Underlining its massive strength in the Australian retail market, 1 in 5 items of clothing sold in Australia are Anko branded.

Now with Mr Bailey’s retirement from Kmart and taking on a chairman’s role - which has never existed before - Wesfarmers is gathering together the organisational structure and discipline to accelerate Anko’s growth.

Aleksandra Spaseska will take on the top job at Kmart. Picture: Marie Nirme

Wesfarmers chief executive Rob Scott told The Australian the succession process at Kmart Group had been planned for a number of years, with Mr Bailey signalling his intention to retire and his new role as chair of Anko designed to help its international expansion.

“It (Anko) is certainly not becoming a new division, it’s still very much a core part of the Kmart Group. Arjun Puri continues as the CEO of Anko,” Mr Scott said.

“But as we look to grow the business, having a chairman like Ian is really important as we develop relationships with other retailers around the group. And given Ian’s experience in Kmart and with Anko, he is really well positioned to play that senior relationship and strategy role to support Arjun and the team.”

Mr Scott said the fact Mr Bailey had taken the role showed Wesfarmers had a “high degree of ambition for Anko” and was a sign of the company’s “commitment and excitement” to the global strategy.

More than 1 billion Anko items are sold each year in Australia

Anko last year signed a deal to sell its products into Canadian department store Hudson’s Bay, as well as a deal with toy giant Mattel to make for it wooden toys that will be sold across more than a thousand Walmart stores in the US.

Mr Scott said there were more deals done and on the cusp of being finalised as Anko picks up new customers from Asia to Europe and the US.

“There’s a number of other deals … Carrefour in France, we’ve also opened a pilot store, a joint venture store, branded as Anko in the Philippines,” he said.

“We have also have a number of other European and North American customers that we’re not able to disclose their names as yet, but we have signed up some other new customers.

“Most of the partnerships that we are working on are with international retailers that will be selling Anko products in their stores. These are very high profile leading international retail groups.

“We are adopting an incremental approach, starting small and then we will continue to invest more in it as we get traction.”

Turning to Kmart Group, Mr Scott said Ms Spaseska’s appointment as incoming managing director of Kmart Group showed its strong succession planning.

“Aleks brings deep knowledge of the Kmart and Target businesses together with strong commercial acumen,” Mr Scott said.

“Working with Ian, Aleks has played an important role in key strategic initiatives within Kmart Group, including the restructuring of Target and transformation activities in data and digital, global sourcing and supply chain. Aleks’ appointment highlights Wesfarmers’ strong talent development and succession planning processes.”