Kmart FY26 Highlights a More Connected Retail Operating Model

September 6, 2026

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Retail store promo showing AI + RFID smart checkout with a woman scanning an item at a self-checkout terminal

Key trends driving the future of retail technology include:

  • AI-driven operations that optimize decision-making and streamline workflows 
  • Smart checkout solutions that reduce friction and improve customer convenience 
  • RFID-enabled inventory visibility for greater accuracy and supply chain efficiency 
  • Seamless customer journeys that connect online and in-store experiences 

Kmart FY26 Highlights a More Connected Retail Operating Model

Kmart’s 19.7% digital sales growth in the second half of FY26 is only one part of a broader shift across its retail model.


Digital engagement continued to build, with monthly active app users exceeding 1.6 million, while Kmart also launched its marketplace and introduced Joy, its AI digital assistant.


Inside the store network, 20 Plan C+ stores were trading by year end, with RFID and AI-enabled processes continuing to expand. At the same time, investment in fulfilment, order management and supply-chain technology is moving forward alongside digital growth.


Taken together, the direction is clear: digital, stores, inventory, fulfilment and AI are becoming increasingly interconnected rather than operating as separate parts of the business.


For Australian retailers, that creates a bigger investment question — how to make these systems work together as one operating model.

This shift will be part of the conversation at Retail Show Australia 2026, where retail technology, AI, store operations and fulfilment come together in Melbourne this September.

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