KMART boss Guy Russo is pinning his hopes on low prices and improved customer service to tempt shoppers to open their wallets in the approach to Christmas.

But he admits he is bumping up against sagging consumer confidence triggered by international events and tighter family budgets.

He also said he had no quibble with stablemate Coles launching a clothes line that could compete with Kmart's range, joking that Coles - which like Kmart is also owned by conglomerate Wesfarmers - should have made the move years ago.

To read the full story, follow this link: http://www.smh.com.au/business/online-shopping-no-threat-20111004-1l77z.html