Target to close dozens of stores in 'boutique' shift   :(

7 June 2018
Sydney Morning Herald


Target will close dozens of stores in an effort to reduce its footprint by 20 per cent over the next five years and create a "boutique" fashion chain competing with fast-fashion giants H&M and Uniqlo.

The brand, which has 305 stores across Australia, has been a problem child for the Wesfarmers retail conglomerate and the ugly sister to the group's department store powerhouse, Kmart.


Target has been a problem child for the Wesfarmers retail conglomerate.


Wesfarmers' CEO of department stores, Guy Russo, said that having stabilised Target's earnings and reset its cost base, after it ran at a $195 million loss in 2016, the group would further improve profitability by closing underperforming stores when their leases expired.

“We’re not going to go after size any more, and we’ll just be a nice new boutique retailer that plays in mid-tier, and I’d like to make sure it's a profitable mid-tier business," Mr Russo said at a Wesfarmers investor briefing day on Thursday.

Mr Russo said Target was continuing its shift away from its traditional market position as a rival to Kmart and Big W to a more fashionable brand in the mould of foreign fast-fashion giants H&M, Uniqlo and Zara.


“They’ve stopped their growth [in Australia] but they’re enough for my team to be inspired around fashion, quality and their fabrics," he said.

He said he had given his design teams a mandate to improve quality and style, while dropping prices compared to the fast-fashion competitors.

He said "mid-tier" shoppers made up the biggest part of the $83 billion a year apparel, homewares and children's goods markets that it played in, which was why Target could do well while higher-end retailers struggled.

Some Target stores would be converted to the more profitable Kmart brand where it made sense, Mr Russo said. Kmart would continue to open eight to 10 new stores a year, meaning total store numbers would remain relatively flat across the two brands.

Wesfarmers' department stores had total sales of $8.5 billion and wanted to grow that to $10 billion by tapping into offshore opportunities.

Already it is wholesaling its private-brand products to Robinson department stores in Thailand and Indonesia, which Kmart's boss, Ian Bailey, said was a learning exercise for targeting growth markets overseas.

“If you think about us as a product company then it’s the obvious thing to do - it'd be almost crazy not to," he said. “How big is the prize? Well the world’s enormous. I think there’s potential in the long run.

fat steve and fat janeen need to stop shopping online.

penalty rates probably dont help targets bottom line either.

steve, janeen and the unions have killed another iconic business  :'( :'( :'( :'( :'(

People that work weekends and public holidays should get paid the penalty rates.  They should not have been cut in the first place.   :(

Penalty rates have been around a long time. Why would they suddenly be so bad?

Spot

Sir Spot of Borg wrote on Jun 8^th, 2018 at 9:18am:

Penalty rates have been around a long time. Why would they suddenly be so bad? Spot

its the times spot... worldwide things are tougher...
when a belt tightens we all have to tighten up

god I hate to see jobs go....

Sir Spot of Borg wrote on Jun 8^th, 2018 at 9:18am:

Penalty rates have been around a long time. Why would they suddenly be so bad? Spot

ebay hasnt been around for a long time though has it ?

aquascoot wrote on Jun 8^th, 2018 at 10:17am:

Sir Spot of Borg wrote on Jun 8th, 2018 at 9:18am: Penalty rates have been around a long time. Why would they suddenly be so bad? Spot ebay hasnt been around for a long time though has it ?

Actually it has

Spot

Sir Spot of Borg wrote on Jun 8^th, 2018 at 10:35am:

aquascoot wrote on Jun 8th, 2018 at 10:17am: Sir Spot of Borg wrote on Jun 8th, 2018 at 9:18am: Penalty rates have been around a long time. Why would they suddenly be so bad? Spot ebay hasnt been around for a long time though has it ? Actually it has Spot

sorry spot.

ebay started in australia in 1999 and please read the following carefully

In 2001, Target announced its first ever loss, to the sum of $43m.

target was originally fossey's which started in 1926 ;)

The retail slump caused by the impoverishment of the many as a matter of government policy is reaping dividends.....  ::)  :-/  ;D  :'(

cods wrote on Jun 8^th, 2018 at 9:25am:

Sir Spot of Borg wrote on Jun 8th, 2018 at 9:18am: Penalty rates have been around a long time. Why would they suddenly be so bad? Spot its the times spot... worldwide things are tougher... when a belt tightens we all have to tighten up god I hate to see jobs go....

I'll tighten my belt when the pollies and their mates and the business people tighten theirs....

Grappler Truth Teller Feller wrote on Jun 8^th, 2018 at 10:54am:

The retail slump caused by the impoverishment of the many as a matter of government policy is reaping dividends.....  ::)  :-/  ;D  :'(

sorry , incorrect

Consumer Spending in Australia increased to 256004 AUD Million in the first quarter of 2018 from 255130 AUD Million in the fourth quarter of 2017. Consumer Spending in Australia averaged 115732.72 AUD Million from 1959 until 2018, reaching an all time high of 256004 AUD Million in the first quarter of 2018

consumer spending is at record levels.
just not at target.
steve and janeen prefer ebay, amazon and catch of the day

Kmart and target are pretty much the same store. Not sure why so many malls have one of each.

aquascoot wrote on Jun 8^th, 2018 at 10:53am:

Sir Spot of Borg wrote on Jun 8th, 2018 at 10:35am: aquascoot wrote on Jun 8th, 2018 at 10:17am: Sir Spot of Borg wrote on Jun 8th, 2018 at 9:18am: Penalty rates have been around a long time. Why would they suddenly be so bad? Spot ebay hasnt been around for a long time though has it ? Actually it has Spot sorry spot. ebay started in australia in 1999 and please read the following carefully In 2001, Target announced its first ever loss, to the sum of $43m. target was originally fossey's which started in 1926 ;)

1999 was a long time ago now and i doubt it was ebays fault their profits were down. If aussies werent so ripped off everywhere they wouldn't have to go online

Spot

Sir Spot of Borg wrote on Jun 9^th, 2018 at 6:24am:

1999 was a long time ago now and i doubt it was ebays fault their profits were down. If aussies werent so ripped off everywhere they wouldn't have to go online

poor aussies...we whinge a lot    we want full employment with penalty rates   but we dont want to pay them.. ::) ::)...just who do they expect to pay?  if not the consumer?.. >:( >:(


we used to have specialty shops..created huge employment   and then someone  was it Mr Woolworths thought lets hav e ashop that sells everything all under the one roof.....ooop   now lets make that shop   self services.....even better just one staff member taking the money....yummy!.. hey wait a minute we can squeeze more under this one roof....oh sorry if it means closing down a few individual shops   but thats life!.....

maybe the pendulum has swung the other way....and most dont want one aisle after the other full of cheapo goods.  rack after rack of the same thing.... ::) ::)

cods wrote on Jun 9^th, 2018 at 6:50am:

Sir Spot of Borg wrote on Jun 9th, 2018 at 6:24am: 1999 was a long time ago now and i doubt it was ebays fault their profits were down. If aussies werent so ripped off everywhere they wouldn't have to go online poor aussies...we whinge a lot    we want full employment with penalty rates   but we dont want to pay them.. ::) ::)...just who do they expect to pay?  if not the consumer?.. >:( >:( we used to have specialty shops..created huge employment   and then someone  was it Mr Woolworths thought lets hav e ashop that sells everything all under the one roof.....ooop   now lets make that shop   self services.....even better just one staff member taking the money....yummy!.. hey wait a minute we can squeeze more under this one roof....oh sorry if it means closing down a few individual shops   but thats life!..... maybe the pendulum has swung the other way....and most dont want one aisle after the other full of cheapo goods.  rack after rack of the same thing.... ::) ::)

Kmart was the same last week.
There was only 1 girl serving the entire huge shop
except for self service check outs .
There was a queue at both.

I complained in a loud voice & got served straight away.

Myers is another one....its even hard to find a Pay station....it drives me daft.....for a struggling industry   why do they make it so hard to go into their shops???... >:( >:( >:( >:(

cods wrote on Jun 9^th, 2018 at 7:22am:

Myers is another one....its even hard to find a Pay station....it drives me daft.....for a struggling industry   why do they make it so hard to go into their shops???... >:( >:( >:( >:(

Myers is a rip-off -
they charge higher prices for the same goods
compared to other shops.
Then - it's even cheaper online.