In a note to investors released on May 22, parent company Wesfarmers revealed that up to 75 large format Target stores and Target Country stores could permanently shut, while up to 92 large format Target stores and Target Country stores could be converted into Kmart branches. Wesfarmers, which owns both Target and Kmart, confirmed the drastic restructure would take place within 12 months, although most action would occur in 2021.
The decision could affect around half of Target’s 284 Australian branches.
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Wesfarmers also revealed $780 million of writedowns on its Kmart Group and industrial and safety branch, and a number of plans designed to “accelerate the growth of Kmart” and “address the unsustainable financial performance of Target”.
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”.
So far, the specific stores affected by the restructure have not been publicly revealed as the company prioritises communication with team members.
However, speculation is swirling on social media with many Aussies keen to discover if their local store is set to close.
It is understood the majority of Target stores set to close or be converted into Kmarts will be announced by the company later today.
The shock announcement comes just weeks after it was revealed that three Target stores across three Australian states were also earmarked for closure.
A Target spokeswoman originally confirmed the store in Pasadena in South Australia would close on May 30, with affected team members informed of the closure in late January.
It will be followed by the closure of the Target branch in Campbelltown in Sydney’s southwest on July 4, with staff of that store informed in early March.
The Meadow Springs shop in Mandurah, Western Australia will also close on August 1, with employees told in mid-January.