Business

Target stores to be closed or rebranded as Kmart, Wesfarmers announces

Target stores to be closed or rebranded as Kmart, Wesfarmers announces

More than 100 Target stores across Australia could be axed or rebranded as Kmart in a major revamp of the struggling chain.

Wesfarmers has announced mass store closures and rebranding of the brand, after reviewing its financial viability.

The company says it will convert as few as 10 and as many as 40 Target stores as well as 52 Target Country stores to Kmart stores.

It will also close 10 to 25 of its bigger stores and 50 small Target Country stores.

Wesfarmers said staff working in Target stores being converted would instead be employed by Kmart. Workers in the stores facing closure could be given jobs in its other businesses, such as Bunnings Warehouse and Officeworks.

Many of the stores will be rebranded as Kmart, which has been the more profitable business.

Managing director Rob Scott told 7NEWS Kmart was the more profitable of the two stores, so it was decided to shift the focus away from Target.

“For some time now, the retail sector has seen significant structural change and disruption, and we expect this trend to continue,” Mr 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.”

The changes are expected to happen over the next year, with the majority occurring in 2021.

Western Australia has 30 Target stores, including 16 in the Perth and Mandurah area.

Wesfarmers has yet to announce which stores will be affected.