Retail shakeup: Target stores to close or be converted to Kmart outlets
The struggling Australian retail sector faces another hurdle with Wesfarmers announcing they will close or convert up to 167 Target stores in a massive restructure for the retail giant.
The huge shakeup will see the retail conglomerate lose 10 to 25 of their larger Target stores, and convert as many as 92 Target stores to Kmarts.
Whilst this includes converting many of their Target Country stores, 50 of the small format regional stores will also close.
The announcement comes off the back of Wesfarmers reporting $780 million of writedowns on its Kmart Group and industrial and safety division.
QUT Business School Associate Professor Gary Mortimer told Deborah Knight Wesfarmers couldn’t keep running two discount department stores.
“I think this is the end of the Target brand for Australia in the coming years.”
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