“On the consumer side, we are still seeing solid DIY demand.”Edwina Pickles
The retail giant recorded a 2.9 per cent decline in net profit for the year to $2.3 billion, but exceeded market expectations and saw a strong rebound in trading in the second half.While Scott estimates the impact of inflation has seen cost pressures of between 5 to 10 per cent across the entire business, demand for building and home improvement spend has remained strong.
“My anticipation is somewhere through the first half of the 2023 calendar year and into the second half, you’ll start to see that product moderation. I think that’s really good for builders and their customers,” he said.He noted trading had returned strongly since retail restrictions were lifted last year, with consumers keen to get their spaces set up ahead of this year’s festive season.
“Kmart is uniquely positioned in an inflationary environment to extend its low-price leadership and profitably grow its share of customer wallet,” the company said in its report to shareholders.