Up to 75 Target stores will be shut with another 92 Target stores to be converted into Kmart stores in a restructure by parent company Wesfarmers.
The Perth-based conglomerate said that the decision was necessary in a bid to reduce unsustainable costs in the company, with focus shifting to the comparably more-profitable Kmart brand.
About half of Australia’s Target Country stores will close, while 10 to 25 large-format Target stores will also close.
The decision will leave us with around half of the existing 284 Target stores.
“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,” Wesfarmers chief executive Rob Scott said.
The restructuring is expected to be implemented over the next twelve months with the majority occurring in calendar year 2021.
It said staff in Target stores being converted would be employed by Kmart, while those in stores being shut would be considered for new roles across the wider group, including in Bunnings and Officeworks. They also announced they’ll be cutting numbers in Target’s support office.
The group is continuing its assessment of strategic options for a commercially viable Target and its remaining store network.