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REVEALED: The 64 Australian Target stores set to convert into Kmarts or fancy new ‘K Hubs’ this year – as others prepare to shut for good
- Target is set to shut 52 stores, while 64 others are expected to convert to Kmarts
- Wesfarmers announced majority of conversions will take place throughout 2021
- 64 outlets will convert into Kmarts or ‘K Hubs’, which are smaller format stores
Target Australia is set to shut more stores permanently in a major shake-up, with further outlets expected to convert into Kmarts.
Parent company Wesfarmers announced the majority of the conversions will take place throughout 2021 after the retail chain suffered a $67million slump in sales.
Over the next 12 months, 52 Target stores will close its doors for good, while 64 others are preparing to convert into Kmarts or ‘K Hubs’, which are smaller format country stores.
Last year, 16 Target outlets transitioned into either a Kmart or the brand new K Hub store, while eight others permanently closed.
Last year, a number of regional Target stores were converted into ‘K-Hub’ – a smaller format shop selling homewares, clothing, and kids range (picture of a K-Hub store in regional Victoria)
Target Australia is set to shut more stores permanently in a major shake-up in 2021 (file image)
‘The decision to transform the Target network, and the difficult decision to close some of our stores is not one that is made lightly but one that is necessary to improve the commercial viability of the business,’ the chain said on its website.
‘In order to do this successfully in the current retail environment, we need to adapt our business – to make it smaller, more focused, less complex and more digitally enabled so we can better serve our customers both in-store and online.’
A number of regional Target stores have since been re-branded as ‘K-Hub’ shops.
‘Our K hub stores may look a little different to what you’d expect from a normal Kmart store,’ Kmart said in August last year.
‘They have our most popular Kmart products across kids, home and clothing, but they’ve been brought to life in a new way – a collection inspired for a smaller neighbourhood store, with bigger convenience in mind.’
The major shake up 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 will have the option to shop Kmart and Target’s full product range online, then visit the store to collect their items.
‘Our online business will still be available 24 hours a day. We’ll be increasing our digital capabilities, so that we can continue to meet growing demand in this space,’ it said.
Last year, the company said the restructure would reduce Target’s ‘unsustainable’ cost base and allow it focus on the more-profitable Kmart.
The closures and conversions are likely to cost the company between $120million and $170million over the next year.
A further $140million will be used for one-off store conversion and stock clearance costs.
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