Kmart Group - Product quality and safety
Kmart Group is committed to developing high-quality, safe and compliant products that enhance customer experience and deliver commercial growth. Kmart Group quality teams maintain a strong focus on customer safety as a top priority. The quality teams work closely with suppliers to conduct safety investigations to ensure that product integrity and performance is consistent. Product safety recalls are conducted when necessary or as a precautionary measure to eliminate customer exposure to potentially unsafe products. During the 2020 financial year, Kmart conducted five recalls, Target four recalls and Catch one recall.
The General Merchandise team achieved a 41 per cent reduction in number of recall units this financial year as compared to last year.
For Apparel, there was a 28 per cent reduction in number of units recalled compared to last year.
The Apparel team has made significant progress in aligning processes in all regions to ensure better pre-production meetings and inline inspections to help prevent the issues at final inspection.
Kmart Group continues to refine product review processes in accordance with the three-year Australian Competition and Consumer Commission (ACCC) enforceable undertaking signed by Target in the 2019 financial year to ensure all products for children up to 36 months of age meet relevant safety standards.
The Hardgoods team achieved a 72 per cent drop in the number of recalls this financial year as compared to last year. The team has been focused on a preventative model, allocating more resources to assess and mitigate the product risk as early as possible.
The Soft Goods team conducted safety training across all levels within own teams as well as suppliers to ensure compliance to safety regulations and protocols. No recalls were reported in the 2020 financial year; a significant improvement from the previous financial year when four recalls related to consumer safety issues were reported.