Wesfarmers To Shut Up To 75 Target Stores And Convert Over 90 Into Kmart Stores
Wesfarmers, owner of Target and Kmart, has revealed a major restructuring of the two chains, shutting up to 75 Targets and converting a further 92 in Kmart stores.
In an announcement to investors on Friday morning, Wesfarmers said the restructure was essential to reducing Target’s unviable cost base due to its consistent underperformance.
Somewhere between 10 and 40 large format Target stores will convert into Kmarts, while another 62 Target Country Stores will be converted into small format Kmart stores.
The remaining 50 Target Country stores will close, while 10 to 25 of Target’s large stores will shut. This means a total of between 122 and 167 Target stores will either be shut or converted into Kmart stores.
The restructuring will roll out of the next year and will cost Wesfarmers between $120 million and $170 million, and write down the value of assets in the division by $430 million to $480 million.
As a result of the underperforming Target stores, Wesfarmers will also take a hit of up $950 million in the 2020 financial year.
Wesfarmers chief executive Rob Scott said: “The actions announced reflect our continued focus on investing in Kmart, a business with a compelling customer offer and strong competitive advantages, while also improving the viability of Target by addressing some of its structural challenges by simplifying the business model.
“While accounting standards require us to recognise an impairment of assets within Target to implement the restructuring, these actions will allow us to enhance the overall value of Kmart Group and further strengthen Kmart.”
Staff affected by the closures will be offered jobs at Kmart or given other employment across the Wesfarmers portfolio.
Latest News
From [MediaCom] Russia With Love! Meet New Aussie CEO Yaron Farizon
MediaCom’s recent hunt for a new CEO went global, ultimately delivering the globetrotting Yaron Farizon to its North Sydney headquarters. And Farizon certainly comes with the right pedigree. Born in Kiev in the Ukraine, educated in Israel, he worked for P&G as a business director for eight years through the UK and Eastern Europe before […]
The Brag Media Appointed Lead Agency For SEND, Australia’s First Exclusively Online Supermarket
The Brag Media is continuing to step into the spotlight, working with companies and clients who match their ambition. SEND is the latest brand to fall under The Brag Media marketing remit; Australia’s first ever exclusively online supermarket, launching onto the retail scene as of late July. An extension of the SEND marketing team, The Brag […]
Mindshare Launches New Global ‘Good Growth’ Positioning
Mindshare, the media agency network that is part of WPP, is making a series of new appointments to its senior leadership and capabilities teams to support its new proposition of ‘Good Growth.’ Today the marketing and media ecosystem is dominated by geographically limitless digital platforms with billions of users. These platforms have connected people like […]
Have You Injected Your Vax Ad? Entries For B&T’s Good AZ Gold Adland Challenge Close Today!
Do you have a cracking campaign idea on how to move the needle on Australia’s vaccination rollout and remove all that hesitancy around the AstraZeneca shot? Well, this is your moment. We at B&T have created the Good AZ Gold Adland Challenge in the hope of uncovering something special to help us leave lockdowns behind […]
D&AD & Google Launch Shift In Sydney
Education charity D&AD has announced the launch of the inaugural D&AD Shift with Google program in Sydney. Running in London and New York since 2016, Shift is D&AD’s free, four-month industry-led night school which aims to uncover, support and ultimately help secure jobs for self-made creative talent without a traditional degree qualification. Supported by the […]
Tuesday TV Wrap: Beauty And The Geek Winner Announcement Peaks At 665,000
What? No Olympics in the headline? We’re as shocked as you are, but Tuesday night saw the end of Nine’s Beauty and the Geek reboot. The grand final itself peaked at 588,000 viewers according to OzTAM’s metro data, while the winner announcement fared better with 665,000 viewers. Nine will now be gearing up for The Block, which […]
ABS And UM Tackle One Of Australia’s Most Complex Media Campaigns: The Census
The Australian Bureau of Statistics (ABS) and media agency UM have launched one of the most complex media communications assignments in Australia, the 2021 Census. The campaign is designed to support the ABS achieve a 95 per cent participation rate across the country with the roll out across every household and all people aged 18 plus, monitored and […]
Social Media Overtakes Television As Youths’ Favourite Source Of News
Social networks the top news source for youths. That's Facebook and Twitter, not the 2010 film with Justin Timberlake.
Facebook News Kicks Off In Australia, As Social Media Giant Promises To Pour $15m Into Local Journalism
Zuckerberg has certainly opened the purse strings here, although $15m is really chump change for a multi-billionaire.
ESL’s Head Of Marketing On Understanding The Growing Esports Audience
Do you still think of Pong when you hear someone mention Esports? Brush up on your knowledge here.
Adam Suckling Steps Down As CEO Of Copyright Agency
Copyright Agency today announced that after six years as CEO, Adam Suckling has decided not to renew his contract for a further three-year term. Mr Suckling will leave the organisation in February next year, ending a very successful period of leadership of the Copyright Agency.
Quiip Announces Seven New Clients & Six Appointments
The good news continues at Quiip HQ. Just a shame about this whole global pandemic, really.
Cummins&Partners Unveils Latest Work For Jeep
What’s the most important feature in your car? For Jeep drivers, the answer is always the same. Capability.
NSW Government To Start Broadcasting 11am Presser On TikTok
Gladys is here to show us she's down with the cool kids. Doesn't rule out adding a daily dance for the TikTok stream.
The Australian Bureau Of Statistics Teams With UM To Launch National Census
The Australian Bureau of Statistics (ABS) and media agency UM have launched one of the most complex media communication assignments in Australia, the 2021 Census. The campaign is designed to support the ABS achieve a 95 per cent participation rate across the country with the roll out across every household and all people aged 18 plus, monitored and followed-up by about 20,000 ABS staff. The campaign’s […]
Grill’d Teams With Heston Blumenthal For Pricey New Plant-Based Burger Range
There's no doubting Heston Blumenthal's culinary touch and uncanny ability to turn a $15 burger into a $35 one.
What’s Next For Email Marketing?
What's next for email marketing, you ask? Let's hope it's not a return to tacky chain emails with bad jokes.
Study: 63% Of Australian Consumers Return To Brands That Treat Them As An Individual
63% of customers prioritise customer service, the other 37% will just buy whatever sh*t is on sale, study finds.
One Shot At Love: Anti-Vax Dating App Kicked Off Apple’s App Store
Australia is currently working on its own anti-vax dating service, set to be named the 'Byron Bay hinterland'.
Publicis Announces Partnership With TikTok To Harness ‘Community Commerce’
Publicis unveils new partnership with TikTok. Or, as they'd say in the Paris head office, la TikTok.
Aussies Want Ads On Netflix (If It Saves Them Some Money)
Let's face it, when you're six hours into a Netflix binge and too lazy to press pause, an ad wouldn't be so bad.
The Wall Street Journal | Barron’s Group Appoints WeThinkMedia As Exclusive Advertising Representative In Australia & NZ
With Sky News' ban from YouTube and Alan Jones booted off the Tele, there's a real opportunity for global publications.
Twitter Partners With The Associated Press And Reuters To Fight Misinformation
B&T remains completely impervious to the threat of misinformation, although did you hear they saw Tupac alive in Cuba?
Shopper Promotes Within Its NSW Sales Team
Shopper has promoted Samantha Barron to Group Sales Manager and Jessica White to Business Manager in Sydney to strengthen agency partnerships and continue providing best-in-market sales support to Shopper’s NSW agency clients.
Telstra Announces Payphones Will Now Be Free
Not since Dr Who learned he could time travel has there been this much excitement about the humble payphone.
The Moonman Teams Up With Author Matthew Hardy For ‘Saturday Afternoon Fever’ LiSTNR Podcast
The Moonman, of course, is a radio personality. Although he could easily be mistaken for a serial bottom flasher.
Billie Eilish Lends New Song To Dodge’s “Power Uncaged” Campaign
If it's got wonderkid Billie Eilish in it, it has to be great. Although, admittedly, this errs a tad on the shit side.
LG Kicks Off “Life’s Good” Campaign In Australia With Musician Stan Walker
This campaign sort of works like a karaoke competition, just sans the drunkenness at 3am and abysmal Céline renditions.
