Kmart's New Zealand operation is approaching the $1 billion turnover mark, as it plans to open its largest store in the country yet. 

BusinessDesk reports annual earnings lodged with the Companies Office show Kmart NZ Holdings declared just shy of $1 billion total revenue in the year to June 30. 

Auckland University marketing professor says Kmart has managed to create quality products and boost its fashion output to avoid the stigma that comes with big-box retailers.

"They've reduced the amount of stuff that they had and they're only focused on really good, quality products at that affordable price - so through doing that and getting their fashion and style up, they've managed to avoid the stigma."

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