Cr Dickerson made the comment at the September Ordinary Meeting of Dubbo City Council, after being asked about a teleconference he had last month with Wesfarmers.

"There was no discussion around any new location for Kmart or another Coles in Dubbo, it was really just about the general overview of Dubbo and the keenness Dubbo has to see Kmart in particular and more Coles developed in Dubbo," he said.

In August, deputy mayor Ben Shields said Wesfarmers, which owns stores such as Coles, Kmart and Liquorland, was not thinking seriously about Dubbo.

"There is no doubt in my mind that the executives at Wesfarmers need to get their act together and develop a new, exciting shopping destination, preferably in Dubbo's CBD, that incorporates new retailers to compete with their arch rivals Woolworths," he said.

Cr Dickerson said he made it clear Dubbo was not against Wesfarmers.

"Essentially why I spoke to them was just to talk about what was happening in Dubbo, the desire for Dubbo to see things like a new Coles for example, Wesfarmers having a high presence there. I explained a bit more of the background behind the front page of the paper and really just encouraged them to continue those discussions," Cr Dickerson said.

"I invited the general manager or the CEO of Wesfarmers to talk at our CEO breakfast the same way the CEO of Woolworths had done previously.

"In my time as mayor I've certainly met with Kmart on many occasions so I'm sure they understand Dubbo is a very good spot for them to be doing business and they're still looking at ways they can do more business in Dubbo."

Dubbo is the largest regional town in Australia that does not have Kmart according to Wesfarmers media and external affairs manager Cathy Bolt.

Ms Bolt said there had been discussions about a site for Kmart Australia at Dubbo for many years, however there had been no conclusion.