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Wesfarmers To Close, Re-Brand More Target Stores

Wesfarmers CEO, Rob Scott, has revealed more Target stores are set to be closed, or re-branded to Kmart in the coming future, as the retail conglomerate seeks to turnaround the struggling department store.

Disclosed in its recent earnings report, Target’s Q3 sales fell 2% to $544 million, whilst same store sales dipped 2.6%.

Kmart has continued its winning streak with Q3 sales jumping 10.2% to $1.2 billion, and like-for-like sales soaring 7.7%. The retailer claims results are driven by continued “price leadership”.

During Q3, Kmart completed refurbishments to four stores, and opened three new stores (including a former Target branded site).

Mr Scott’s comments come from the annual Macquarie Connections Conference, where he expressed disappointment over Target’s financial performance, despite the the retailer remaining “a profitable business”.

Scott affirms there’s “still a lot of work” to do at Target. He claims whilst Wesfarmers makes a profit from the business, the return isn’t viewed as “satisfactory”.

Wesfarmers is focused on reducing the length of Target’s national leases, in a bid to establish a “smaller, more profitable network” for the retailer.

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