Breaking: Target will close 167 stores across Australia in coming months.
Some of the stores will be closed for good, while some will be converted to Kmart stores.
Parent company Wesfarmers today announced the major changes that will impact thousands of jobs and millions of customers.
The company said its new strategy was to move all of the discount stores to Kmart as they were more profitable and popular outlets.
“For some time now, the retail sector has seen significant structural change and disruption, and we expect this trend to continue,” Wesfarmers Managing Director Rob Scott said.
“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.”
“All team members in Target stores scheduled for conversion to Kmart will receive an offer of employment from Kmart,” the company told ABC News.
Westfarmers announced the decision on Friday morning to the ASX.
The company said some 75 stores would close for good and 92 would become Kmart stores. The actions will be undertaken over the next 12 months.
Details of the Target and Kmart changes coming:
*Some Target & Target Country stores to become Kmart
*Closure of between 10-25 large Target stores
*Closure of 50 small Target Country stores
*Significant restructure of Target support office
*Restructuring=up to $170m
*Write-downs=up to $780m
More news to come
Ryan is Contributing Editor