Target Australia stores set to convert to Kmarts or K Hub as 52 outlets will close for good
Revealed: 64 Australian Target stores will be converted to Kmarts or want new ‘K Hubs’ this year – while others prepare to close for good
- The goal is to close 52 stores, while 64 others will be converted to Kmarts
- Wesfarmers has announced that the majority of the conversions will take place in 2021
- 64 outlets will be converted into Kmarts or ‘K Hubs’, smaller stores
Target Australia plans to permanently close more stores in a major uproar, and more stores are expected to be converted to Kmarts.
Parent company Wesfarmers announced that the majority of the conversions will occur in 2021 after the retail chain suffered a $ 67 million drop in sales.
Over the next 12 months, 52 Target stores will close for good, while 64 others are preparing to be converted into Kmarts or ‘K Hubs’, which are smaller nationwide stores.
Last year, 16 Target outlets moved to a Kmart or K Hub store.
Target Australia plans to permanently close more stores in a major shake-up in 2021 (file image)
Last year, a number of Target regional stores were converted into ‘K-Hub’ – a smaller store that sells household goods, clothing and children’s goods (photo from a K-Hub store in regional Victoria)
“The decision to transform the Target network and the difficult decision to close some of our stores is not light, but necessary to improve the commercial viability of the business,” the chain said on its website.
“To do this successfully in today’s retail environment, we need to adapt our business – to make it smaller, more focused, less complex and digital, so we can better serve our customers both in-store and online.”
A number of regional Target stores have since been rebranded as ‘K-Hub’ stores.
“Our K-hub stores may look a little different than you would expect from a normal Kmart store,” Kmart said August last year.
“They have our most popular Kmart products for kids, home and apparel, but they’ve been brought to life in a new way – a collection inspired by a smaller neighborhood store, with more convenience in mind.”
The big stir comes after the retailer announced the official opening of its brand-new concept stores in Cobram, Echuca and Seymour in regional Victoria in August last year.
Customers have the option to purchase the full range of Kmart and Target online and then visit the store to pick up their items.
‘Our online business is still available 24 hours a day. We will expand our digital capabilities so that we can continue to meet the growing demand in this space, ”he said.
Last year, the company said the restructuring would reduce Target’s “unsustainable” cost base and allow it to focus on the more profitable Kmart.
The closures and conversions will likely cost the company between $ 120 million and $ 170 million in the next year.
An additional $ 140 million will be used for one-time store conversion and clearance costs.
Advertisement
.