For many years there was a joke that Target was really pronounced "Tar-jey" with a French accent.
It was the department store where the popular TV characters Kath and Kim passed the Fountain Lakes to challenge the perception that they were financially and stylistically challenged Bogans from the Melbourne suburbs.
Although Target was a discounter, he had always tried to position himself as a slightly more sophisticated alternative to Kmart or Big W. Designer Stella McCartney's “sustainable” textile line seemed fashionable and environmentally friendly.
In the end, consumers chose Kmart, which is clearly a discounter and whose sales are more resilient than Target during an economic downturn.
Times have changed in Australia and beyond.
For many years there was a joke that Target was really pronounced "Tar-jay" with a French accent. The Broadway store in Glebe in central Sydney is pictured on May 22, 2020
Times have changed in Australia and beyond – no one cares whether they are judged for hunting for bargains. The day that Westfarmers announced that 75 Target stores were closing, Kmart sold toasters for $ 15
In comparison, the goal was to sell toasters for $ 25, which contributed to the perception that they were more expensive than Kmart
Very few buyers care whether they are looking for bargains and avoid traditional prestige department stores like Myer and David Jones.
What will happen to Target?
The parent company Wesfarmers closes 75 stores, including 25 larger and 50 country stores
The remaining 92 Target stores will be converted to Kmarts, including 40 large stores and 52 country stores
Some Target Country stores are being converted into smaller Kmart Hub stores
Changes will occur in the next 12 months, the majority in 2021
The Kmart Group is providing $ 120 million to $ 170 million in restructuring costs to reflect the closure and conversion of its target businesses
Source: Wesfarmers announcement on the Australian Stock Exchange, May 22, 2020
The rise of the German supermarket brand Aldi and its popularity among wealthy baby boomers clearly shows this.
Bunnings also has the hardware room to himself after Woolworths’s Masters Home Improvement experiment failed because customers thought it was too easy for these simple DIY projects.
No wonder that Wesfarmers' retail conglomerate will close up to 75 Target stores in the next 12 months and convert 92 remaining to Kmarts.
On the day of the announcement, Kmart sold toasters for $ 15 to $ 10 less than Target.
The goal was also to sell microwaves for $ 69, compared to $ 48 at Kmart, which contributed to the perception that it was much more expensive.
A Kmart store on Broadway in central Sydney was also busy as a nearby destination was quiet.
Daisy Feller, senior industry analyst at IBISWorld, said Target's attempt to be an upscale discounter had confused potential customers.
Kmart is clearly a discounter whose sales are more resilient than Target's during an economic downturn. The Kmart store on Broadway in Sydney (pictured) was much busier than a nearby target
Although Target was a discounter, he had always tried to position himself as a slightly more sophisticated alternative to Kmart or Big W. A kmart is shown on Broadway
"Target was still trying to reach this everyday, very accessible market while it was high fashion – it's confusing for people," she told Daily Mail Australia.
"You don't know where you fit in your life."
Target's collaboration with Stella McCartney, daughter of Beatles singer and songwriter Paul McCartney, has probably turned the penny pinching shopper off.
"There are initiatives with Stella McCartney that are almost trying to position themselves in the upper price segment while at the same time reaching the discount segment," said Ms. Feller.
When it came to saving money, consumers only preferred a discount store that pretended to choose Kmart and avoid Target.
"Consumers prefer something that markets itself as a discount rather than high-end and discount at the same time," said Ms. Feller.
Daisy Feller, senior industry analyst at IBISWorld, said Target's attempt to be an upscale discounter had confused potential customers. An almost empty Target store on Broadway is shown
The goal was also to sell microwaves for $ 69, compared to $ 48 at Kmart, which contributed to the perception that it was much more expensive
Ian Bailey, CEO of Kmart, said Target will be downsized with "fewer stores and more online business." Kmart is shown on Broadway
CLOSE CONFIRMED TARGETS
Armidale, early mid-2021
Campbelltown, July 2020
Cooma, early mid-2021
Cootamundra, early mid-2021
Corowa, early mid-2021
Deniliquin, early mid-2021
Forbes, early mid-2021
Leeton, early 2021
Merimbula, early mid-2021
Morisset, mid 2021
Narrabri, early mid-2021
Nowra, early mid-2021
Salamander Bay, early mid-2021
Scone, early mid-2021
Wagga Wagga, early mid 2021
Winmalee, early mid-2021
Bacchus Marsh, early mid-2021
Bairnsdale, early mid-2021
Benalla, mid 2021
Colac, early mid-2021
Kerang, mid 2021
Langwarrin, early mid-2021
Maryborough, early mid-2021
Myrtleford, early mid-2021
Traralgon, early mid-2021
Warragul, early mid-2021
Weston Creek, early mid-2021
Atherton, early 2021
Beaudesert, early mid 2021
Biloela, early 2021
Casino Retail Center, early mid 2021
Clifton Beach, early mid-2021
Emerald, early mid-2021
Goonellabah, early 2021
Kippa Ring, early 2021
Longreach, early mid-2021
Moranbah, early mid-2021
Murgon, mid 2021
Murwillumbah, early 2021
Busselton, early 2021
Karratha, early mid-2021
Kununurra, early mid-2021
Manjimup, early mid-2021
Margaret River, early mid-2021
Meadow Springs, August 2020
Merredin, early mid-2021
Narrogin, early mid-2021
Clare, early mid-2021
Millicent, early 2021
Naracoorte, early mid-2021
Pasadena, June 2020
Port Lincoln, early 2021
Devenport, early mid-2021
Rob Scott, managing director of Wesfarmers, admitted that Target was a weak link when he announced the closure of 75 Target stores on Friday.
"The retail sector has seen significant structural changes and disruptions for some time now, and we expect this trend to continue," he told the Australian Stock Exchange on Friday.
"With the exception of Target, Wesfarmers' retail stores are well positioned to respond to changes in consumer behavior and competition associated with this disruption."
Westfarmers, which also owns Bunnings and Officeworks, informed the ASX that it wanted to deal with the "unsustainable financial performance of Target".
Ian Bailey, CEO of Kmart, said Target will be downsized with "fewer stores and more online business."
Ms. Feller said the Target name could disappear entirely and end a brand that started with a curtain shop in Geelong in 1926.
"It is possible that they will let it run out completely," she said.
In the end, consumers chose Kmart, which is clearly a discounter and whose sales are more resilient than Target during an economic downturn. The photo shows a target jacket that is sold in downtown Sydney for $ 39
Westfarmers, which also owns Bunnings and Officeworks, informed the ASX that it wanted to deal with the "unsustainable financial performance of Target". Pictured is a jacket that is sold at Kmart for $ 20, almost half the price at Target
Ironically, Target survived when the small group of remaining stores were turned into stores that were clearly upscale.
& # 39; This is definitely an option. This would solve the problem of confusing brand positioning – consumers would see it as a completely different business than Kmart and not just another Kmart, ”said Ms. Feller.
Mark Schiavello, the national retail leader at BDO, said Australian consumers would likely prefer discounters in their region as corona viruses were lifted.
"When life returns to normal, people will spend money again, but their behavior will change from prestige shopping to practical everyday items," he told Daily Mail Australia.
“Retailers should expect the majority of people to remain budget-conscious for some time to come, as the impact of the pandemic is still felt in our society.
"Local shopping will be a big comeback after COVID."
Target employees have the opportunity to be employed in the remodeled Kmart branches or in other parts of the Wesfarmers group. Pictured is a Kmart store on Broadway
Mark Schiavello, the national retail leader at BDO, said Australian consumers would likely prefer discounters in their region as corona viruses were lifted. Kmart is shown on Broadway in Sydney
TARGET TRANSACTIONS CONVERTED TO KMART TRANSACTIONS
Bega, early mid-2021
Bowral, early 2021
Gunnedah, early 2021
Katoomba, early 2021
Moree, early 2021
Mudgee, early 2021
Picton, early 2021
Tumut, early 2021
Ulladulla, early 2021
Windsor Town S / C, early 2021
Yass, early 2021
Ayr, early mid 2021
Beerwah, early mid-2021
Bowen, early 2021
Charters Towers, early 2021
Chinchilla, early 2021
Dalby, early 2021
Gatton, early 2021
Goondiwindi, early 2021
Gympie, early 2021
Ingham, early 2021
Mareeba, early 2021
Noosa Junction, early 2021
Ocean Shores Village Ctr, early 2021
Port Douglas, early 2021
Roma, early 2021
Sarina, early 2021
Stanthorpe, early 2021
Warwick, early 2021
Yamba, early 2021
Yeppoon, early 2021
Ararat, early mid-2021
Castlemaine, September 2020
Cobram, July 2020
Echuca, July 2020
Hamilton, early 2021
Kyabram, September 2020
Entrance to the lake, early 2021
Leongatha, early 2021
Mansfield, early 2021
Portland, early 2021
Seymour, early 2021
Woodend, September 2020
Yarrawonga, early 2021
Berri, early 2021
Murray Bridge, early 2021
Port Augusta, early 2021
Victor Harbor, early 2021
Esperance, early 2021
Geraldton, early mid 2021
Northam, early 2021
Pinjarra, early 2021
Katherine, early 2021
Target employees have the opportunity to be employed in the remodeled Kmart branches or in other parts of the Wesfarmers group.
& # 39; All team members in Target stores who are planning to switch to Kmart are offered the opportunity to join the growing Kmart team. For other affected Target team members, we will work with them to identify and offer other implementation opportunities in Kmart, Catch, Bunnings and Officeworks as these companies continue to grow, ”said a spokeswoman.
The Australian retail sector remains in trouble as sales dropped a record 17.9 percent in April after a record 8.5 percent increase in March as a buyer before the coronavirus locks on toilet paper, noodles and hoard rice.
In the worst economic crisis since the Great Depression of the 1930s, it's hardly hip to be fashionable when it comes to shopping.
Target employees have the opportunity to be employed in the remodeled Kmart branches or in other parts of the Wesfarmers group
Although Target is a discounter, he tried to position himself as an upscale retailer by selling the "sustainable" textiles from fashion designer Stella McCartney to appeal to ethical buyers
The goal was the kind of place that Kath and Kim could get to the Fountain Lakes without admitting that they were budget-conscious fools on the outskirts. The comedians Jane Turner and Gina Riley are pictured as mother Kath Day-Knight with her daughter Kim
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