Up to 75 Target stores to be closed, others converted to Kmart

Marco Green
May 23, 2020

In a statement, the company said they had been forced to "address the unsustainable financial performance of Target".

The retail operator reportedly has 284 Target stores in the country, which will be pared down to 125 locations as Wesfarmers shifts its focus to Kmart.

Between 10 and 40 large Target stores will be converted to Kmart stores, and 52 Target Country regional stores will also be converted to small Kmart stores.

These changes will result in a significant reduction in the size of the Target store support office.

Following a review into its Target stores, Westfarmers chose to convert between 10 and 40 suitable Target and Target Country stores into Kmarts, subject to support from landlords.

More than 100 Target stores across Australia could be axed or rebranded as Kmart in a major revamp of the struggling chain.

It's not clear what their intentions are for city Target shopfronts and the closure locations have not been made public yet. Wesfarmers has said these are ongoing.

"Following the completion of the first phase of the Target review, Kmart Group has identified a number of actions to accelerate the growth of Kmart", the stock market statement said.

An update to the Australian Securities Exchange this morning confirmed that Wesfarmers sees a dim future ahead for Target, with Wesfarmers managing director Rob Scott singling out Target as the weakest brand in its portfolio.

"Unfortunately, the disruptive and competitive nature of the retail sector requires us to make some hard decisions to ensure we have a viable Target business into the future, while continuing the strong growth of Kmart and Catch".

Wesfarmers' Managing Director Rob Scott said the move was created to enhance the "overall position" of the Kmart Group, and improve the "commercial viability" of Target.

"Unfortunately, the disruptive and competitive nature of the retail sector requires us to make some hard decisions to ensure we have a viable Target business into the future, while continuing the strong growth of Kmart and Catch", he said.

The company began in Geelong in 1926 as a drapery.

The changes are expected to happen over the next year, with the majority occurring in 2021.

Western Australia has 30 Target stores, including 16 in the Perth and Mandurah area.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER