Five years ago, Kmart Australia was on the verge of bankruptcy. Today, the company is one of the most profitable retailers in Australia – a turnaround credited in large part to their supply chain.
The original Kmart stores were set up in Australia in 1968 as a joint venture with the Kmart group in the US. Today, they are 100 percent owned by Wesfarmers and the name is used under a long-term licensing agreement.
In 2008, the retailer was in trouble, caught in the midst of a recession with zero profit.
That same year, Managing Director Guy Russo was hired to lead the turnaround of the struggling company.
Russo set about reducing costs and optimising product selection, but also displayed clear focus, leadership and a strong strategy, which led to a complete overhaul of Kmart Australia’s sourcing and supply chain process.
This article originally appeared on Ferret. To read the article in full click here.