Your favourite department store is on the chopping block
For many Australians a trip to the shops wouldn’t be complete without popping into Target, but the future of one of the country’s most instantly-recognisable department stores now looks decidedly bleak, after a string of sub-par sales reports.
Rob Scott, the managing director of Wesfarmers, which owns Target, revealed the company recorded a “non-cash impairment” of $300 million due to lacklustre sales yesterday, and is considering all options for the underperforming chain.
One possibility is converting unprofitable Target outlets into the Kmart brand, which was performing strongly by comparison, although a merger has been ruled out.
Two Targets in Broadmeadows and Templestowe in Victoria have already been converted into Kmarts, with a third conversation slated for Victoria Park in Perth.
“No further conversions have been disclosed as yet,” a Wesfarmers spokeswoman told News.com.au.
“Kmart is going strongly and that is where the biggest growth and focus is likely to be.”
The cause of Target’s decline has been disputed by many retail experts, with Queensland University of Technology retail expert Dr Gary Mortimer saying shoppers shouldn’t be surprised.
“I suggested a couple of years ago it doesn’t make sense for one conglomerate, Wesfarmers, to run two different discount department stores,” he told News.com.au.
“They are duplicating their costs and essentially selling the same products.”
What are your thoughts? Would you be sad to see Target go?