Major change coming to Kmart refund policy across Australia from August 1

Retail giant Kmart will enforce a receipt requirement for “change of mind” refunds in Australian stores from August 1.

Customers have previously been able to have those refunds processed simply by proving their identity, but a stronger enforcement of the nationwide policy will require customers to hold on to their proof of purchase.

Proof of purchase has always been preferred by staff handling refunds at Kmart, according to the retailer, which said it only allowed the use of IDs for refund verification on an ad hoc basis.

“Previously, stores were able to give customers a change of mind refund without a receipt if proof of identity was provided,” Kmart said in a memo that was shared in an app for workers.

“However, this option is being removed and customers will require a receipt.

“From next week a poster will be displayed in stores. However, please remind customers to retain their receipts.”

This does not include faulty products, Kmart confirmed.

The change is also being enforced in Target stores.

“In line with most major retailers in Australia, Kmart and Target will be enforcing its returns policy and requiring proof of purchase for ‘change of mind’ returns,” a Kmart and Target spokesperson said.

“We are communicating this change extensively across multiple customer touchpoints to ensure our customers are well-informed ahead of this change coming into effect.”

Staff will also accept various forms of proof of purchase for refunds, including online order receipts, bank statements, Buy Now Pay Later statements, and Flybuys statements.

Proof of purchase also includes digital receipts, which are available for customers with the Kmart app.

Shoppers have also been advised to take photos of their receipts so that they can also be stored digitally.

“You can still go to the original store, and they will look up the receipt for you if you give them the date and time (of the purchase),” one customer also wrote on Facebook.

Kmart advised that staff conducting this receipt search process might also require a bank statement or other proof of purchase.

Some customers expressed frustration on social media about refunds of the Kmart Anko range.

“I find this annoying for things that are their own brand, where else am I going to purchase it from?” one customer wrote on Facebook.

But as Kmart and Target merged, parent company Wesfarmers noted in July 2023 that select Anko ranges would also be pushed into Target stores from early 2024.

One Kmart customer said on social media the refund crackdown had been in full swing at her local store for some time already.

“Our local Kmart has been doing this for over a year. I don’t see why people are outraged,” they wrote.

Kmart confirmed signage was already on display in stores and on the website.

Refund requests must be made to Kmart within a 60-day period, unless customers are OnePass members for whom a yearlong refund period exists.

Some products, such as cosmetics, pierced jewellery and printer cartridges, are not available for change of mind refunds.