Reports in the Fairfax that Wesfarmers plan to close or convert up to 167 Target stores; 75 stores will be closed and 92 stores converted to be Kmart.
https://www.theage.com.au/business/companies/wesfarmers-to-c…
Apparently Target has an unsustainable cost base, and Kmart is more profitable.
Will you miss Target?
Or are you already a Kmart fan?
I agree, although over recent years I think the two brands have overlapped in market segmentation, in that Kmart stocks some reasonable stuff now.
agree
I have always know this would happen (a few years back). Their products are too similar. The Kmart shops around my area (Sydney) have also been progressively refurbished to modern looks while the Target ones have been left looking 'old'.
I have always been a Kmart shopper (perhaps because it's right at the mall entrance so way easier to access).
Similar products but Target was a little more expensive and often better quality. Still people would rather save their dollars and go to Kmart. Not to mention the popularity of the 24hr stores.
I've always liked Target, especially the clothes quality and how often they put stuff on clearance lol.
There's no Kmart to replace Target in my town so I wonder if it'll be converted.
I hardly shop at Target these days because they no longer have clearance racks at my local store. I miss those $5 and under bargains.
they are only closing and converting some of their store… the target brand wont disappear entirely.
i'm guessing the targets in the larger malls and shopping centres will remain. its the regional and standalone stores that might be affected.
Correct; around half of Target's 284 stores will be impacted (plus Target Head Office)
Would prefer them to stay Target just so they don't move the checkouts to the centre of the store, which is one of the most impractical things ever seen in retail.
Especially with COVID 19. Everyone come together in the centre for some get together time, then you have to walk pass everyone coming in.
Getting infected by walking pass people is next to zero.
LOL I would be more worried about the queue and crowd in the middle.
Makes sense from a business perspective. Kmart's positioning the marketplace is well established with limited competition. Target is floundering whilst Big W is on the improve. Won't be long before something happens to Myer & DJs particularly in this climate, combined with the increase of online shopping.
Where does Harris Scarfe fit?
Harris Scarfe have had a troubled past and never really played in the main arena. Australia is a small market which is consolidating each day with the growth of online. They may be better to position themselves in the regional areas given the reduced competition
I don't think Harris Scarfe was national brand like Target, Kmart, Big W, Myer and DJs, so it doesn't really fit in with these stores. I have only known 2 stores in Sydney which have now closed. From the looks of their current locations they're mostly in Victoria and Tasmania.
Yeah, they only opened two stores in WA like 2-3 years ago but now they're all closed.
Kmart sells a lot of junk quality items. It's not all bad especially their homewares which can be great value but I don't get the hype for their home brand electricals and such. I still can't get over a wall adapter/charger breaking apart in my hands as I tried to unplug it.
Target's problem is that they've become Grace Bros of the 90s, ie selling unbranded mid level items that are far too overpriced.
Was thinking Wesfarmers gonna acquire some failing business
Here is a list of stores closing or converting
https://www.news.com.au/finance/business/retail/target-store…
It seems that the stores in metro areas are not affected at all.
Since Target has 284 locations, 40% of them will still remain operating.
Never been a Target fan except for thier BULK (4kg/5kg) washing powders.
Nery cheap and cant get them anywhere else
Bit of a shame - Target did well with the previous CEO (who then went to Kmart) positioning itself as a mid level affordable brand. I still think there is a market for it - you've got cheap and cheerful Kmart, and bit better quality (with associated price increase) Target.
I've heard for some time that there was talk about centralising the operations of the two brands - that would be a good move in my opinion, and really allow them to align (and re-dominate) the cheap and middle line of that type of shopping.