Target to close up to 75 stores

  • Target to close up to 75 stores

Target to close up to 75 stores

"With the exception of Target, Wesfarmers' retail businesses are well-positioned to respond to the changes in consumer behavior and competition associated with this disruption".

Ian Bailey, the managing director of the Kmart group, which includes Target, said Wesfarmers still believed Target "has a future as a leading retail brand in Australia and is much loved by many customers, but a number of actions and changes are required to ensure it is fit for objective in a competitive, challenging and dynamic market, including a smaller number of stores and a stronger online business".

"The reduction in the Target store network will be complemented by increased investment in our digital capabilities, following the continued strong growth in online sales across the Kmart Group and the pleasing progress in Catch since its acquisition in August 2019", Wesfarmers Managing Director Rob Scott said.

The restructure will see between 10 to 40 large format Target stores converted into Kmarts, subject to landlord support, while an additional 52 Target Country stores will be converted into small format Kmart stores.

Wesfarmers will also close its Anko homeware and clothing stores in the US.

Wesfarmers will shut up to 25 stores of its struggling Target chain and close Target Country stores, as it shifts its focus to the better-performing Kmart. The closures will take place over the next 12 months.

Wesfarmers has announced mass store closures and rebranding of the brand, after reviewing its financial viability.

All Target employees will be offered alternative employment across the Wesfarmers group, including Kmart, Officeworks, Bunnings, and Catch Group, which was acquired past year by Wesfarmers.

"Leveraging the strengths of the Kmart Group, we have made a significant effort to avoid store closures, retain our valued team members, keep serving our customers and supporting our suppliers", Kmart Group Managing Director Ian Bailey said.

Speaking to the ABC, Wesfarmers said the decision will see as many as 1,300 positions at Target disappear.

All up, roughly half of Target's Australian operation will be closed or converted.

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