Last Friday, Wesfarmers announced up to 167 target stores could disappear forever over the next year. Under the drastic plan, up to 75 Target stores will be closed down, including Corowa, Benalla and Myrtleford while 92, including Cobram will be converted into Kmart outlets.
The shock announcement regarding the struggling discount department store chain was made by Wesfarmers in a note to investors.
A Target spokeswoman said the decision had been a difficult one.
“During this difficult time, we are committed to supporting our team,” the spokeswoman said.
“Across the Kmart Group we have made a significant effort to avoid store closures and retain our people and for impacted store team members we have the benefit of time to help find alternative employment opportunities.
“All team members in Target stores scheduled for conversion to Kmart will be offered the opportunity to join the growing Kmart team, for other affected Target team members, we will work with them to identify and offer other redeployment opportunities in Kmart, Catch, Bunnings and Officeworks as these businesses continue to grow.
“We believe that Target has a future as a leading retailer in Australia and we know it is loved by so many, but a number of actions are required to ensure it is fit for purpose in a competitive, challenging and dynamic market, including a smaller number of stores and a stronger online business.”
Wesfarmers managing director Rob Scott said the changes would “enhance the overall position of the Kmart Group, while also improving the commercial viability of Target”.
“For some time now, the retail sector has seen significant structural change and disruption, and we expect this trend to continue. With the exception of Target, Wesfarmers’ retail businesses are well-positioned to respond to the changes in consumer behaviour and competition associated with this disruption,” Mr Scott said.
“The actions announced reflect our continued focus on investing in Kmart, a business with a compelling customer offer and strong competitive advantages, while also improving the viability of Target by addressing some of its structural challenges by simplifying the business model.”
For more information and a list of store closures and changes, visit www.target.com.au/ businessupdate
12°C