Your favourite department store is on the chopping block
<p>For many Australians a trip to the shops wouldn’t be complete without popping into Target, but the future of one of the country’s most instantly-recognisable department stores now looks decidedly bleak, after a string of sub-par sales reports.</p>
<p>Rob Scott, the managing director of Wesfarmers, which owns Target, revealed the company recorded a “non-cash impairment” of $300 million due to lacklustre sales yesterday, and is considering all options for the underperforming chain.</p>
<p>One possibility is converting unprofitable Target outlets into the Kmart brand, which was performing strongly by comparison, although a merger has been ruled out.</p>
<p>Two Targets in Broadmeadows and Templestowe in Victoria have already been converted into Kmarts, with a third conversation slated for Victoria Park in Perth.</p>
<p>“No further conversions have been disclosed as yet,” a Wesfarmers spokeswoman told <a href="http://www.news.com.au/" target="_blank"><span style="text-decoration: underline;"><em><strong>News.com.au</strong></em></span></a>.</p>
<p> “Kmart is going strongly and that is where the biggest growth and focus is likely to be.”</p>
<p>The cause of Target’s decline has been disputed by many retail experts, with Queensland University of Technology retail expert Dr Gary Mortimer saying shoppers shouldn’t be surprised.</p>
<p>“I suggested a couple of years ago it doesn’t make sense for one conglomerate, Wesfarmers, to run two different discount department stores,” he told <a href="http://www.news.com.au/" target="_blank"><span style="text-decoration: underline;"><em><strong>News.com.au</strong></em></span></a>.</p>
<p>“They are duplicating their costs and essentially selling the same products.”</p>
<p>What are your thoughts? Would you be sad to see Target go?</p>
