BREAKING NEWS: Speculation Running Rampart Wesfarmers Planning To Close Target
Speculation is running rampant among suppliers to the Wesfarmers owned Target that the struggling retailer is set to be closed down in Australia.
Earlier today the Company issued a statement claiming that ‘Despite the continuation of sales growth to date across most operating divisions and moderated supply
chain risks, there has in recent days been weakness in sales of discretionary products such as apparel,
particularly in Target.
This shift in customer behaviour is expected to continue and represents a risk to the outlook for retail sales across the Group as Australian and other governments take action to contain the impact of COVID-19.
The Group also expects additional operating costs due to activities to prepare and respond to COVID-19 and, while offset in the short term by foreign exchange hedges, increases in the cost of goods sold as a result of the lower Australian dollar. Given the significant level of uncertainty, the Group is not able to provide an estimate of the impact of COVID-19 on Wesfarmers’ full-year financial results.
Sources who contacted ChannelNews said that among ‘senior management’at Target the speculation is that the business will be closed down as the Coronavirus esculates.
Cathy Bolt Erik Media and External Affairs Manager at Wesfarmers did not deny that management are considering closing the retailer down when it was put directly to her.
She said “If that was the case we have an obligation to tell the market”.