The change that will save Kmart shoppers 'hundreds'
KMART shoppers are set to save hundreds of dollars each year with clothing items slashed after the retail giant announced it has started manufacturing in Java, Indonesia.
Nine's A Current Affair reports some clothing will be reduced by more than 20 per cent as designers claim they can order on such a scale that their goods are cheaper and of better quality.
"Customer expectations are rising at an incredible rate," Kmart managing director Ian Bailey told A Current Affair.
"We sell 800 million things a year. You don't have to make a lot of money on each thing for it to still be a very profitable business," Mr Bailey said.
Kmart promised it will not produce "cheap and nasty" clothing items as it increases sales by keeping prices low.
Mr Bailey said a lot of Australians were "doing it tough" and a few dollars saved on clothing could make a huge difference.
The company also vowed to not let profits get in the way of protecting the environment.
"All of us are looking for factories that do the right thing and pumping waste into rivers is no good to anyone in the long run. No good to us, no good to the community," Mr Bailey said.
The beginning of Kmart operations in Java marks a shift out of manufacturing behemoth China. However, Mr Bailey said the move away from China - due to rising wages - did not mean slave labour conditions at the company's facilities in Java.
"There's a minimum wage which is set by the area, which all these people are governed by, and many are paid more than that because they do a little bit of overtime and their base hours are a 40-hour week, Monday to Friday," he said.
Items to be reduced include board games, exercise mats, kitchenware and clothing.
The first 320 reduced-price items will hit shelves this week, with hundreds more to come throughout the year.