State of AI 2026 Report Is Live!

Blog

Digital Advertising Insights · Audience Insights · Mobile App Insights · Sui Lian Chua · April 2026

How Kmart Strengthened Its Position in Australia’s Discount Retail Market Through Audience Alignment and Value-Led Marketing

While retail app engagement normalized after holiday peaks, Kmart continued to grow its user base, increasing its share among BIG W shoppers and reinforcing its position within Australia’s value retail market.

ausretail-cover

BIG W’s WAU Trend Appears Consistent with Broader Retail Market Patterns

  • WAU trends on Google Play closely mirror those on iOS, suggesting a broader consumer behavior trend rather than an iOS-specific pattern.

  • Similar to BIG W, Target saw a notable shift in WAU in Jan 2026 before stabilizing in Feb 2026, potentially reflecting a post-holiday normalization in retail app engagement.

  • Notably, Kmart was able to sustain and grow its WAU baseline during the same period, diverging from the broader retail trend.

aus-p1

Kmart Sustained Growth While Target’s WAU Remained Tied to Seasonal Peaks

  • Target’s WAU performance appears largely cyclical, with engagement rising during major shopping periods before returning to a relatively stable baseline.

  • In contrast, Kmart sustained its growth momentum over the same period, growing its WAU base by nearly 4x between 2023 and early 2026.

ausp2

Kmart Captures a Growing Share of BIG W’s Cross-Shopping Audience

Cross-shopping behavior suggests Kmart has become an increasingly important alternative destination for BIG W users.

  • In Apr 2023, Target and Kmart held broadly similar positions among BIG W’s cross-shopping competitors.

  • By Apr 2026, Target’s overlap had declined to below 10%, while Kmart’s share had grown to over 40%, following a peak of 52% in Apr 2025.

aus-3

Shared Audience Profiles, with Stronger Fashion Affinity Among Kmart Users

  • Home Cooks and Shopaholics are the leading audience segments for both BIG W and Kmart, with Telehealth Patients also ranking among their top profiles.

  • A key difference emerges in fashion-related interests, with Kmart users 73% more likely than BIG W users to be classified as Fashionistas.

aus-4

Community and Value Are Central to Kmart’s Messaging Strategy

  • Kmart’s messaging strategy emphasizes inclusivity and community, frequently using collective language and community-focused hashtags to foster a sense of connection among shoppers.

  • Compared with BIG W, Kmart also places greater emphasis on value-driven messaging, with keywords such as “low prices” and “value” featuring prominently across its creative assets.

aus5

Sensor Tower's platform is an enterprise-level offering. Interested in learning more?


Sui Lian Chua

Written by: Sui Lian Chua, Strategic Consultant

Date: April 2026