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Target Struggles With CE While Big W Delivers Growth

The value consumer electronics and appliances battle between Big W and Target appear to be favouring Big W who unlike Target have been witnessing sales growth.

With Target tipped to be getting out of TV’s both K Mart and Target are struggling to identify the mix of CE products that will deliver growth despite poaching a senior CE buyer from Big W last year.

In their latest filings both Kmart and Target took a hit, with EBIT dropping 13.7 per cent to $540 million.

Kmart revenue increased 1.1 per cent to $8.59 billion but earnings excluding KTAS and significant items fell 13.7 per cent to $540 million.

Like-for-like sales for Kmart were flat while Target’s dropped 0.8 per cent while Woolworths’ loss-making Big W chain recorded another loss for the year earlier today with EBIT loss of $85 million although that was less than the loss of $110 million Big W recorded in 2018.

Unlike Target Sales at Big W rose 6.5 per cent to $3.79 billion.


Wesfarmers chief executive Rob Scott said performance for the department stores was “below expectations” and flagged a repositioning of the Target brand, admitting the two had been “too similar” over the past decade.

12 months ago, Big W merged CE buying to be under the control of one buyer Taren Singh this has led to an expansion of branded CE products such as Sony TV’s, Fitbit Logitech accessories and Apple iPads, at the same time Target has been expanding their range of cheap house brand CE products which consumers appear to be buying.

Now Target is trying to copy Big W’s formula by ranging branded products from Fitbit, Google, JBL, Plantronics and Samsung.

“The problem is that Target is not getting the floor traffic for consumer electronic products that Big W is getting now they are struggling to work out the mix of brands that will deliver CE growth” said one major supplier to Target.

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