From pickle-flavoured ice blocks to bacon-scented pillows: The bizarre offerings from Walmart that could soon be on sale in Australia - but rifles WON'T be on the shelves

• e-mail

With speculation Walmart could soon enter Australia's lucrative retail market, there's a number of unique items that could soon make their way into Australian homes. 

A quick browse through the catalogue of the world's biggest retail store reveals the unique tastes of Americans - from bacon-scented pillows and pickle-flavoured ice blocks to peanut butter and jelly sandwiches in cans.

In the United States, the Arkansas-based colossus also sells high-powered firearms but this would be illegal in Australia, with national laws in 1996 banning the sale of all semi-automatic rifles.

Walmart, owned by the Waltons, who are America's richest family, already operates in 28 countries and Australia could be next.

The world's biggest retailer Walmart could soon move to Australia and sell items Americans love, like peanut butter and jelly sandwiches in cans

In the United States, the Arkansas-based colossus sells high-powered firearms but this would be illegal in Australia following national laws in 1996 banning semi-automatic rifles

Millionaire electronics chain founder Dick Smith predicted Walmart could set up in Australia by buying the Kmart department store chain from its Perth-based parent company Wesfarmers before savagely cutting costs.

'They'll take Kmart, that will go first, in the next four or five years,' he told Daily Mail Australia on Thursday.

The prediction comes after Walmart's U.K. subsidiary Asda merged with Sainsbury's, freeing up capital for the retail juggernaut to invest in a new market like Australia.

Australian consumers could soon have access to a range of whacky American products from like pickle-flavoured ice blocks 

Bacon-scented pillows (left) and powdered peanut butter could also be coming to a store near you

Were that forecast to come true, Australian consumers could soon have access to a range of whacky American products from bacon-scented pillows to pickle-flavoured ice blocks, peanut butter and grape jelly sandwiches in cans, powdered peanut butter and jelly bean-flavoured milk, if their American catalogue is anything to go by.

'They have to keep growing and the only way they can really grow now is by taking over other businesses and they'll be able to do incredibly well here,' Mr Smith continued.

'They will do that without any doubt because they have to have endless growth.' 

Mr Smith predicted Walmart would sack Australian Kmart staff and offer cheaper prices by retrenching staff.

'Walmart, they are completely ruthless,' he said. 

'The Walmart formula is sack people. Don't share the wealth, sack people.

American retail giant Walmart could take over Australia's Kmart department store chain within five years, millionaire businessman Dick Smith predicts

'That's what they'll do here.'

CMC chief markets strategist Michael McCarthy said Wesfarmers would happily offload Kmart to Walmart, even though sales volumes increased by eight per cent during the last financial year.

'That's strictly in the rumour category but nonetheless, we couldn't rule it out,' he told Daily Mail Australia.

'This is their sort of business. 

'Both Wesfarmers and Wesfarmers shareholders would be delighted if they find a buyer for Kmart - the variety store format has been under pressure for an extended period and a graceful exit from Kmart would be applauded.' 

He predicted the world's largest retailer, owned by the Walton family, would offer to buy Kmart from its Perth-based parent company Wesfarmers before savagely cutting costs

Electronics chain founder Dick Smith said Walmart would buy Kmart and sack thousands of staff

Dick Smith predicted Walmart would later make a bid for either Woolworths, which bought out his now defunct electronics chain in 1982, or its supermarket rival Coles.

'Walmart will come and take over either Coles or Woolworths and then Aldi will take over the other,' he said.

Such a scenario would see privately-owned German-owned supermarket giant Aldi and Walmart, based in Arkansas in the American south, own both of Australia's supermarket giants. 

Coles's parent company Wesfarmers is preparing to spin off its profitable supermarket brand into a separately-listed corporation to compete with Woolworths.

Both supermarket chains are now Australian-owned but Mr Smith said two northern-hemisphere predators could soon own both, which would lead to even cheaper food sourced from overseas.

'The board and president of Walmart will be on the threat of dismissal unless he or she just has endless profits and in the end you can't get an increase in profits by opening more and more shops, you have to take over existing businesses,' Mr Smith said. 

Coles has been earmarked to be demerged and floated on the Australian Stock Exchange as a separate company by its owner Wesfarmers

The Australian Financial Review's Sue Mitchell this week predicted that Walmart's huge surplus of free capital could lead to the US giant to make a bid for Coles.

Walmart has not made any announcement about buying Kmart, Coles or Woolworths. 

Wesfarmers by law would be required to disclose such an offer to the Australian Securities Exchange. 

America's corporation tax rates have also been reduced by the Trump Administration, prompting big corporations to look at investing in companies with an established market share.

Once demerged, Coles would become a new top 30 listing on the ASX with Wesfarmers planning on retaining a 20 per cent ownership of the supermarket giant.

Michael McCarthy from CMC Markets said that while Walmart wasn't a groceries  specialist, Coles would be a better Australian buy than Kmart.

'The steady earnings that come from the grocery business are attractive to a number of global investors,' he said.

'It's a little removed from Walmart's main business but a pure grocery play in the global context does make more sense for a group like Walmart.' 

Wesfarmers managing director Rob Scott said he has 'no awareness' of Walmart looking to buy Coles or Kmart. 

Wesfarmers's full-year net profit after tax fell by 58.3 per cent to $1.197 billion in the year to June 30, as the expansion of hardware chain Bunnings into the U.K. market flopped.  

Wesfarmers is a Perth-based conglomeration with substantial farming and mining businesses which also owns hardware chain Bunnings and Officeworks.

In the 12 months to the end of last year Woolworths had a 32.2 per cent market share of the grocery sector with Coles just behind at 28.8 per cent, Roy Morgan market research said.

Aldi trailed behind with a 12.1 per cent share while IGA, owned by Metcash, had a 7.4 per cent share. 

Australia is a natural fit for the retail chain with a well-regulated market, no language barrier, direct flights, and already having gained experience competing with Aldi on their home turf