Up to 75 Target stores to be closed, others converted to Kmart - ABC News

Up to 167 Target and Target Country stores will be shut or converted to Kmart sites, putting as many as 1,300 jobs at risk.

Key points:

• Between 10 to 25 Target stores will close
• An additional 10 to 40 Target stores will be converted to Kmarts
• About 52 Target Country stores will be converted to Kmarts, while the remaining 50 stores will be closed

The retailer's owner Wesfarmers is shrinking the struggling chain.

With more than 280 Target stores in Australia, the restructure could see more than half of the Target store network gone.

Following a review, the conglomerate says it will convert 10 to 40 suitable Target locations into Kmarts and shut between 10 and 25 further Target stores.

Around 52 Target Country stores, which are concentrated in regional areas, will be converted to smaller-format Kmarts, while the 50 remaining Target Country stores will shut.

The restructure will also see a "significant reduction" in the size of the Target support office.

The company said there were would be "redeployment opportunities in Kmart and other Wesfarmers businesses" to "minimise the effect of these changes on Target team members".

It said all staff at stores that will be converted will be offered a role at the new Kmart store.

Wesfarmers told the ABC it expects a reduction of 1,000 to 1,300 roles over the next 12 months, with most job losses occurring in 2021.

It said that was based on "conservative redeployment assumptions" and it would be working to lower that number.

The company would not confirm the locations of stores market for conversion or closure.

"For some time now, the retail sector has seen significant structural change and disruption, and we expect this trend to continue," Wesfarmers managing director Rob Scott said.

"With the exception of Target, Wesfarmers' retail businesses are well-positioned to respond to the changes in consumer behaviour and competition associated with this disruption."

Wesfarmers will book $120-170 million in restructuring costs and a $430-480 million impairment charge as a result of the overhaul.

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https://news.google.com/__i/rss/rd/articles/CBMib2h0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDIwLTA1LTIyL3VwLXRvLTc1LXRhcmdldC1zdG9yZXMtdG8tYmUtY2xvc2VkLWRvd24tb3RoZXJzLXRvLWJlLWNvbnZlcnRlZC8xMjI3NTM5MNIBJ2h0dHBzOi8vYW1wLmFiYy5uZXQuYXUvYXJ0aWNsZS8xMjI3NTM5MA?oc=5

2020-05-22 00:20:41Z
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