Shopping giant Kmart will open a massive new store as its main rivals struggle to survive the ongoing coronavirus pandemic, with shrinking numbers of visitors in malls.
The popular discount retailer has been confirmed as one of the primary tenants in a new $ 70 million super shopping center being built west of Brisbane.
The Yamanto Central 50-store development currently under construction near Ipswich, with phase one due to open early next year.
While Kmart remained profitable in deteriorating trading conditions, sister store Target suffered a worse than expected slump of $ 67 million.
Kmart will increase its retail presence by opening more stores (photo, a store in Perth)
Kmart is known for its cheap and trendy household items, including toasters for just $ 7.50 and coffee tables for just $ 29.
Meanwhile, the coronavirus pandemic has only accelerated the shutdown of dozens of other Australian retailers, including Target and David Jones.
Parent company Wesfarmers recently announced that 75 Target stores will close, while 92 others will be transformed into Kmarts.
Kmart and supermarket Coles will now be one of the first tenants when the Yamanto Central, owned by JMK Retail, opens its doors to shoppers in early 2021.
“It’s all you need,” said Vicki Leavy, general manager of JMK Retail Courier post.
“It is designed to be bought quickly or slowly.”
Kmart becomes one of the main tenants when Yamanto Central (pictured, in plans) opens near Brisbane
Ms. Leavy has noticed unprecedented demand for suburban shopping centers during the recent pandemic, with fewer customers willing to enter CBD.
He also explained that there was an ‘unbelievable’ level of potential tenants wanting to open new stores in shopping centers.
“The local centers are sure to maintain that level,” she said.
In February, Kmart rose to comparable store sales growth of 5.5 percent in the first half, compared to a 0.6 percent decline a year ago.
Discounted department store sales are $ 241 million, or 7.6 percent, up $ 4.99 billion.
Many stuggling Targets stores will be transformed into Kmarts (photo, a quiet Sydney store during the recent coronavirus pandemic)
Meanwhile, however, Target’s sales went the other way, dropping by 2.3 percent, compared to 0.5 percent growth a year ago, as it showed a worse-than-expected drop in sales of $ 67 million.
The sharp decline promptly revised the struggling retailer’s commercial viability.
Meanwhile, David Jones will close some of his 48 department stores due to a $ 464 million debt following a loss of sales.
Notable names such as Harris Scarfe, Bardot, Roger David and Napoleon Perdis also declined last year as flies with dozens of stores closing, resulting in heavy job losses.
Wesfarmers has now confirmed that ten to 25 large Target stores will be closed, in addition to 50 smaller Target Country stores.
Kmart will be one of the first stores when Yamanto Central (photo) opens in early 2021
Another 25 regional Target Country stores are transformed into small Kmarts, while between ten and 40 large stores become large Kmarts.
“The strategic review will consider all options for the Target business, including an accelerated store closing program, the conversion of some stores to Kmart and other structural options for the Target business,” Scott told Daily Mail Australia in an April press release.
“The review is an opportunity to review the network, number and size of stores to ensure it is fit for purpose.”
Target personnel are offered jobs at Kmart or other Wesfarmers companies, including Bunnings and Officeworks.
The changes will be rolled out over the next 12 months, with most of the retail rebranding work to be done in 2021.
TARGET STORES CONVERTED TO KMART STORES
Bega, start mid-2021
Bowral, early 2021
Gunnedah, early 2021
Katoomba, early 2021
Moree, early 2021
Mudgee, early 2021
Picton, early 2021
Tumut, early 2021
Ulladulla, early 2021
Windsor Town S / C, early 2021
Yass, early 2021
Ayr, early mid-2021
Beerwah, early mid-2021
Bowen, early 2021
Charters Towers, early 2021
Chinchilla, early 2021
Dalby, early 2021
Gatton, early 2021
Goondiwindi, early 2021
Gympie, early 2021
Ingham, early 2021
Mareeba, early 2021
Noosa Junction, early 2021
Ocean Shores Village Ctr, early 2021
Port Douglas, early 2021
Roma, early 2021
Sarina, early 2021
Stanthorpe, early 2021
Warwick, early 2021
Yamba, early 2021
Yeppoon, early 2021
Ararat, early mid-2021
Castlemaine, September 2020
Cobram, July 2020
Echuca, July 2020
Hamilton, early 2021
Kyabram, September 2020
Lakes Entrance, early 2021
Leongatha, early 2021
Mansfield, early 2021
Portland, early 2021
Seymour, early 2021
Woodend, September 2020
Yarrawonga, early 2021
Berri, early 2021
Murray Bridge, early 2021
Port Augusta, early 2021
Victor Harbor, early 2021
Esperance, early 2021
Geraldton, early mid-2021
Northam, early 2021
Pinjarra, early 2021
Katherine, early 2021
Mr. Scott recently revealed that more Kmart stores can contribute to more pedestrians in malls and centers.
“Converting stores costs money, and there are a number of stores that are not commercially viable in the current structure,” he told the Australian Financial Review.
In some cases, it is better to close stores than to pursue nonviable stores.
“The chance is to find out how we share the costs and benefits together.”
Founded in 1969, Kmart has expanded to 209 stores across Australia and 25 in New Zealand
Target is Australia’s largest department store chain with 284 stores across the country.
Founded in 1926, the store was originally called Lindsays until 1968, when Myer Emporium bought the chain of 16 stores in Victoria, which were renamed Lindsay’s Target.
The retailer was rebranded as Target Australia in 1973.
Kmart opened Australia’s first discount department store in Burwood, Victoria in 1969, attracting an estimated 40,000 customers on opening day.
The chain expanded to 209 stores across the country and 25 in New Zealand.