Is this the end of Target?
The conglomerate said after the first phase of its review, it had identified the need to convert about 52 Target Country stores to small-format Kmart stores and close the remaining 50 Target Country stores that can not be converted to Kmart stores.
How will the closure of Target shops affect CQ shoppers
"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.
As news broke that Australian retailer Target will be shutting half of its stores under a major restructure of the struggling discount department store chain, experts say poor marketing is to blame for the downfall. Closures will impact as many as 25 large-format Targets, and 50 Target Country stores.
More than a thousand workers in the struggling retail industry are at risk of losing their jobs after the owners of discount department store chain Target made a decision to close as many as 75 stores.
Between 1000 and 1300 jobs in stores and Target's support office may be lost, the ABC confirmed, but Wesfarmers management has promised "redeployment opportunities" in the group's other businesses.More news: Hydroxychloroquine linked to increased risk of death in COVID-19 patients
The closures and rebranding are expected to occur over the next twelve months, with the majority taking place in 2021.
While Australia's retail sector has been devastated recently due to economic uncertainty, floods and bushfires and now the COVID-19 pandemic, Dr Mortimer said Target's decision to pull stores was not a reflection of our wider retail woes.
A spokesperson from Target said the Bundaberg store was not impacted by today's announcement and would continue trading as usual.
"For our Target team members that are unable to be redeployed, they will be given consideration for new roles created in Kmart and Catch as those businesses continue to grow".More news: Number of Covid-19 cases worldwide passes 'tragic milestone' of five million
As many as 167 Target stores will be closed or converted into Kmart locations in the coming year, potentially putting more than a thousand jobs on the line.
"Leveraging the strengths of the Kmart Group, we have made a significant effort to avoid store closures, retain our valued team members, keep serving our customers and supporting our suppliers", said Ian Bailey, the Managing Director of Kmart Group.More news: Autistic boy, 9, found dead after kidnapping from Home Depot parking lot