Blab Tech
Kmart Group to Extend RFID Tagging Beyond Apparel and into Target Australia
Kmart Group is set to widen the reach of its radio‑frequency identification (RFID) system, taking the technology beyond clothing and into new product lines – and for the first time, into its sister brand Target Australia.
The move was announced at Wesfarmers Limited’s strategy briefing day on 10 June 2026, with managing director Aleksandra Spaseka highlighting RFID as a cornerstone of the retailer’s low‑cost operating model. Since 2021, Kmart has fitted RFID tags to apparel, and the system now employs autonomous robots called TORY to patrol stores after hours, pinpointing the exact location and quantity of tagged items. Spaseka said the technology has sharpened on‑shelf availability and reinforced inventory integrity for clothing.
Earlier this year, the group ran its first RFID‑enabled stocktake in the apparel division, reporting a faster and more accurate count than manual methods. Currently, more than 60 percent of apparel items are tagged at the source – by the manufacturer – giving item‑level visibility and laying the groundwork for end‑to‑end supply‑chain transparency. While Kmart has not yet named the next categories to receive tags, it cited strong sales in its home‑living segment and the opening of a dedicated K Home store in Melbourne as key indicators.
The rollout into Target Australia is described as a “first‑time” move, though no timetable has been released. Spaseka added that the RFID expansion will run concurrently with AI‑enabled solutions designed to improve inventory integrity across general merchandise.
Kmart’s RFID push is part of a broader supply‑chain modernisation program. The group has upgraded its online order‑management system and is in the process of upgrading warehouse‑management systems across its network. Online orders are now fulfilled centrally in New South Wales and Victoria, and the company is building an automated next‑generation fulfilment centre in NSW. Expected to open in fiscal year 2028, the facility will underpin a more resilient, efficient, and scalable domestic supply chain. The cost of commissioning the new centre, including a period of dual‑site operation, will appear in Kmart Group’s FY27 earnings, with benefits projected to materialise from FY28 onward.
Wesfarmers has positioned artificial intelligence as a growing optimisation layer across forecasting, inventory positioning, and replenishment. Spaseka noted that AI will “become an increasingly important layer of optimisation” and has the potential to further improve speed, consistency, and cost outcomes across the network.
The company’s focus on RFID and AI reflects a broader industry trend toward automated inventory management and data‑driven supply‑chain decisions. While the announcement does not cite regulatory developments or legal actions, it signals a continued investment in technology to support Kmart Group’s cost‑efficient retail model.
At present, the key unresolved items are the specific product categories that will receive RFID tags beyond apparel, the timeline for extending the technology to Target Australia, and the exact scope of AI applications that will be deployed across the group’s operations. Kmart Group’s FY27 earnings will provide a clearer picture of the financial impact of the new fulfilment centre and the broader technology investments, while the company’s ongoing supply‑chain upgrades are expected to deliver operational efficiencies in the coming years.
The move was announced at Wesfarmers Limited’s strategy briefing day on 10 June 2026, with managing director Aleksandra Spaseka highlighting RFID as a cornerstone of the retailer’s low‑cost operating model. Since 2021, Kmart has fitted RFID tags to apparel, and the system now employs autonomous robots called TORY to patrol stores after hours, pinpointing the exact location and quantity of tagged items. Spaseka said the technology has sharpened on‑shelf availability and reinforced inventory integrity for clothing.
Earlier this year, the group ran its first RFID‑enabled stocktake in the apparel division, reporting a faster and more accurate count than manual methods. Currently, more than 60 percent of apparel items are tagged at the source – by the manufacturer – giving item‑level visibility and laying the groundwork for end‑to‑end supply‑chain transparency. While Kmart has not yet named the next categories to receive tags, it cited strong sales in its home‑living segment and the opening of a dedicated K Home store in Melbourne as key indicators.
The rollout into Target Australia is described as a “first‑time” move, though no timetable has been released. Spaseka added that the RFID expansion will run concurrently with AI‑enabled solutions designed to improve inventory integrity across general merchandise.
Kmart’s RFID push is part of a broader supply‑chain modernisation program. The group has upgraded its online order‑management system and is in the process of upgrading warehouse‑management systems across its network. Online orders are now fulfilled centrally in New South Wales and Victoria, and the company is building an automated next‑generation fulfilment centre in NSW. Expected to open in fiscal year 2028, the facility will underpin a more resilient, efficient, and scalable domestic supply chain. The cost of commissioning the new centre, including a period of dual‑site operation, will appear in Kmart Group’s FY27 earnings, with benefits projected to materialise from FY28 onward.
Wesfarmers has positioned artificial intelligence as a growing optimisation layer across forecasting, inventory positioning, and replenishment. Spaseka noted that AI will “become an increasingly important layer of optimisation” and has the potential to further improve speed, consistency, and cost outcomes across the network.
The company’s focus on RFID and AI reflects a broader industry trend toward automated inventory management and data‑driven supply‑chain decisions. While the announcement does not cite regulatory developments or legal actions, it signals a continued investment in technology to support Kmart Group’s cost‑efficient retail model.
At present, the key unresolved items are the specific product categories that will receive RFID tags beyond apparel, the timeline for extending the technology to Target Australia, and the exact scope of AI applications that will be deployed across the group’s operations. Kmart Group’s FY27 earnings will provide a clearer picture of the financial impact of the new fulfilment centre and the broader technology investments, while the company’s ongoing supply‑chain upgrades are expected to deliver operational efficiencies in the coming years.
