Over 160 Target Stores to Close or Convert to Kmart

The restructure puts 1,300 jobs at risk.

We've seen many retail businesses in Australia shut stores over the past year. Popular women's fashion brand Bardot went into voluntary administration in November 2019,  and we shed tears in January when EB Games announced it'd be closing at least 19 of its stores across the country.

Now, up to 75 Target stores will be closed down while 92 will be converted into Kmart outlets.

Considering we have around 284 Target stores down under, that means more than half could be affected. Although, it's not known which particular stores will be impacted yet.

As reported by the Sydney Morning Herald, parent company Wesfarmers announced the restructure this morning, saying they'll shift the company's focus towards the more-profitable Kmart.

It'll also provide an opportunity for the company to invest in its digital offering. 

Target had been struggling financially before the coronavirus pandemic, with Wesfarmers managing director Rob Scott saying the store had suffered from the rise of internet shopping.

"The retail market is fiercely competitive, especially in the mid-market apparel area," he said.

"We have made every effort within Wesfarmers to find a sustainable way forward for Target."

The massive restructure means that some regional areas could be left without a department store.

Plus, Wesfarmers revealed the decision will see as many as 1,300 positions at Target disappear. As the company told the ABC, they're expecting a reduction of 1,000 to 1,300 roles over the next year, with most job losses occurring in 2021. 

Additionally, about half of the 400 jobs at Target's head office are expected to be lost. 

Staff at stores that will be converted will be offered a role at the new Kmart store. Otherwise, they could be looking at employment opportunities across the Wesfarmers portfolio, including Bunnings and Officeworks. 

Team members unable to be redployed will have access to support services and provided with entitlements, like redundancy payouts. 

It's undoubtedly unfortunate timing, considering thousands of workers have already been left without jobs due to COVID-19.

At this stage, we don't know exactly when Target stores will begin closing. So, you might want to schedule your next trip to the store.

Just remember to make sure you're practicing social distancing! 

Header Image: Jeff Greenberg / Contributor / Universal Images Group via Getty Images