The decision by Australian retailers Kmart and Target Corp to reveal the location of their supplier factories in Bangladesh has been described by Oxfam as a ''watershed moment'' for the country's retailers.

Kmart has become the first Australian company to pledge full transparency of its supply chain through the publication of the location of every Bangladesh factory.

Wesfarmers-owned Target has also said it intends to reveal its supplier factories in Bangladesh within the next six to nine months, with India and China to follow.

Oxfam Australia chief executive Helen Szoke said the move was a "watershed moment" for Australian retailing that would encourage transparency for the rest of the industry.

"Without releasing information about supplier locations, there is no way to independently check with workers that decent conditions and basic rights are being upheld within factories."

Kmart and Target were the first Australian companies to sign on to the Bangladesh Fire and Building Safety Accord earlier this year, an agreement that mandates independent building inspections, a thorough review of safety standards, and repairs and renovations to unsafe factories.

However, Szoke said disclosing supplier factory locations went further than their obligations under the Accord.

"Consumers are increasingly asking companies questions, wanting to know that workers making their clothes are being treated fairly. Transparency is an important first step towards achieving safe and fair work conditions - the next step is that all Australian retailers need to do more to ensure workers are receiving living wages and are able to access their rights inside factories."

Pacific Brands, which last week signed the Accord, is also understood to have promised to publish the location of its supplier factories in Bangladesh, according to the Sydney Morning Herald.