WESFARMERS SUSTAINABILITY REPORT 2018

Product quality and safety

The Kmart Group is committed to developing high quality, safe and compliant products that enhance customer experiences and deliver commercial growth. Kmart Group quality teams are based in Australia and across various sourcing regions. These teams work collaboratively across regions and functions to develop improved end-to-end quality practices. Current focus areas which continually build on the existing robust and diligent procedures include:

  • enhancing internal and external capability with a view to strengthening quality controls systems and processes;

  • establishing a system of continuous improvement through an ongoing review of product performance and testing standards; and

  • capturing and using customer data and feedback to drive improvements in product quality.

The safety of customers when using Kmart and Target products is paramount. The Kmart Group engages with customers who may have injured themselves using its products. Kmart Group quality teams collaborate with suppliers to conduct detailed safety and performance investigations. Product safety recalls are conducted when necessary or as a precautionary measure to eliminate customer exposure to potentially unsafe products. Kmart conducted four recalls and Target 17 recalls during the 2019 financial year.

During the year, Target signed a three-year Australian Competition and Consumer Commission (ACCC) Enforceable Undertaking not to sell a convertible tricycle (with features associated with a stroller) unless it has evidence of compliance with the Mandatory Standard. Target has also been required to amend product review processes, so that any sale of a pram, stroller, baby products or toys for children up to 36 months of age, complies with these relevant safety standards.

The safety of team members, customers, suppliers and visitors across all our sites is our highest priority and during the year, we continued to make improvements to safety. A safety incident at Target received some attention when a customer sustained an injury from an apparel display arm. As with any safety incidents in our stores, the corrective actions from the incident included a thorough risk assessment of the equipment involved.