Oh No! It looks Target may be shutting some of its stores as it struggles with falling profits.

Target’s parent company, Wesfarmers, achieved a healthy profit of $5.5 billion. However, it’s discount retailer division didn’t fare as well.

The earnings of Target and Kmart together plummetted $626million last financial year to $540million. That’s a decrease of $86million, according to Wesfarmers most recent full-year financial results. results for the 2019 financial year.

Focus On Quality & Online

Wesfarmers Chief executive Rob Scott spoke to SMH saying:
“Ultimately, it [Target] will be most likely a smaller business over time as we reduce the size of the network and focus more on quality over quantity.”

Mr Scott also highlighted that the focus of the business will be online shopping rather than physical stores.

‘I think over time, we’ll see e-commerce sales represent a very significant proportion of Target’s total sales,’ he said.

To support this direction, Wesfarmers purchased retailer Catch Group in June this year, saying that this decision was made to assist Kmart and Target with the online side of their businesses.

‘So we see the future is very much about having a high quality store footprint complimented by a world-class digital offer. That’s what we’re building through the investment in Catch.’ Mr Scott said earlier this year.

Which Stores Will Close?

There is yet to be an announcement as to which stores will shut down.

Jim Power, an analyst at Wesfarmers shareholder company Martin Currie, said that he was confident the company would make the right decision as they work out which locations are the most profitable to retain as bricks and mortar stores.

“[Wesfarmers will] work through their footprint, figure out what stores make money and try to work on the footprint as much as the consumer proposition,” he said.

In 2018 the number of Target stores across the country was 305, outweighing the more profitable Kmart at 227 stores, according to Canstar Blue.

Which stores do you think Target will shut down first? And would be upset if it was your local store? Tell us in the comments below.

More On Mouths of Mums


  • I am not surprised that Target is closing. Everytime I go in to my local Target stores I see more staff than customer.

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  • I don’t like to buy clothes without trying them first so all of these stores that are closing will just lose my business. They are adjusting with the times though so it is what it is.

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  • With people buying online more and .more, more of these big stores will be closing there doors.

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  • I really hope Launceston keeps at least one of our two – there are so few affordable places to buy kids clothing and Kmart is so poor on quality. Target is still more affordable but higher quality and better designs.

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  • I would be sorry if our Target closed down – best place for shoes and clothes. I could buy homewares on line but clothing and shows never – I have to try on at least 4 sizes of the same article to get one to fit – no way am I going to try online – did it once and had to send the articles back for another size three times.

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  • Target clothes are more quality than the other stores.

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  • Oh no, I love Target. I’d be so sad if ours closed down.

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  • We don’t have one in our town – we’ve been screaming for one for years. I have to travel. I buy from Target whenever I visit a town that has one. This is such a shame. All of my favourite stores are threatening to close down. I’m absolutely a touch and feel shopper, so the thought of more online offerings does not please me.

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  • I’ve started shopping at target more as I’ve started looking for higher quality that will last longer. With a baby the shop closest to the entrance is currently the winner too- which is target. But Kmart is our next in line! Tough competition sometimes

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  • I’ve noticed Target and Kmart don’t have as many clothes for the bigger woman as they used to. Will be a shame to see Target closing some of their stores though.

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  • I like the products that they stock in Target, but much of the time it comes down to being able to buy a similar product cheaper. My husband likes that they have the larger men’s sizes in clothes off the rack

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  • I’ve never really understood how Target does thrive when Kmart is cheaper. If Kmart put the clothing from Target in their range, they could close down the store. What else do they have that’s unique and a must-buy from their store?


    • Yes I don’t understand either.



      • The look, quality and feel of Target clothes are in a completely different league to Kmart’s. I love Kmart, but the baby clothes from Target are much nicer designs and last much longer. And the Kmart women’s work wear just looks cheap and nasty. I swear by Target work pants, have been wearing them for years.

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  • I am surprised by this, with all the kmart hacks i thought they would have made a huge profit. I like target, so it will be shame to see some close. I think of them as an upmarket kmart!

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  • Not sure which store they will shut down but it wont be my local store as it is always crowded.

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  • Just like Big W :(

    Reply

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