Huge change coming to Target as major Kmart brand is rolled out in sister department store

Shoppers are in for a shock as two of Australia's largest retailers are seemingly merging into one. 

Department store chain Kmart's popular 'Anko' homeware range has been spotted on the shelves of Target by one eagle-eyed customer. The sister department stores are both subsidiaries of Wesfarmers. 

Captioned 'the collab we don't need', the video uploaded to TikTok showed the shelves of the Melbourne store stocked with the Kmart products, such as mugs, cups and water bottles. 

Kmart Group revealed on Monday the pilot scheme has been introduced to combat Australia's soaring cost-of-living pressures.

'I think the search for value is something [consumers] are going to continue to try to do as they try and figure out how they maintain their lifestyle,' Kmart Group managing director Ian Bailey said. 

'We had great feedback from customers, we had very encouraging sales. So I think we've got lots of reasons to be optimistic.' 

The change aims to provide greater value on everyday items that are not brand specific, however Target's core business of apparel and homewares will remain unchanged.

'If you think about coat hangers, or plastic tubs, they're going to be under the Anko brand but it's not a product where you're really brand conscious on the same way that you can be with clothing,' Bailey told The West Australian.

Department store chain Kmart's popular 'Anko' homeware range has been spotted on the shelves of Target by one eagle-eyed customer

Kmart Group revealed on Monday the pilot scheme has been introduced to combat Australia's soaring cost-of-living pressures 

Customer feedback is crucial and adjustments could be made, he added.

'We don't anticipate there's a cliff coming where there's a marked drop in consumer confidence on any given day, but ... equally we're not expecting that there's suddenly going to be a resurgence in customer expectations and customer sentiment.'

However, many shoppers have already taken to social media to express their disappointment. 

One wrote: 'Guess I won't be shopping at Target anymore.'

'I was so disappointed,' another shared. 'I hate Kmart quality.'

A third said: 'Nooooooooooooo we don't want this'.

Kmart rebranded its house brand from '&Co' to Anko, an acronym for 'a new kind of', in 2019.

It is a major profit point for the conglomerate, with Kmart's annual report revealing its revenue has jumped up from $9.1 billion to $10.6 billion last year.

READ MORE: Generous Aussie pays off all Christmas lay-by items at a popular Melbourne Kmart

The generous Secret Santa anonymously covered the entire cost of items on lay-by for all customers at a Victoria Gardens Kmart in inner-city Melbourne (stock image)