There were whispers last year that iconic department store 'Target's' days were numbered... stores were to be shutdown or converted into KMart.
These whispers are becoming closer to a reality after comments from Wesfarmers (who owns both KMart and Target) managing director Rob Scott revealed the company had recorded a "non-cash impairment" of $300 million due to Target's lacklustre sales.
In a media conference, Mr Scott confirmed some Target stores could disappear in Australia under the company’s new “agnostic approach”, which meant unprofitable Target stores could be converted into Kmarts if it was in the best interests of the wider company.
Only two Targets have been converted into Kmarts so far... and they were in Victoria.
While the company has not revealed any further planned conversions, Mr Scott emphasised that the company’s focus would firmly be on Kmart moving forward.
“ ... the way that we feel we can deliver better value to shareholders and importantly deliver a better customer offer is really to be doubling down on the business where we have the greatest point of difference with customers and that is Kmart,” he said.
Just a few years ago, both retailers were flourishing, with Target sales hitting $3.8 billion in 2011 compared to Kmart’s $4 billion.
Last year Kmart’s sales had ballooned out to $5.58 billion while Target’s had plummeted to $2.95 billion.
So why are we falling out of favour with Target?
As long as at least ONE of these stores remains in Esperance I'll be happy!