After substantial losses, Target announces it’s closing stores

A brand restructure is underway.

The tough times for bricks-and-mortar retail continue, with Target (unsurprisingly) set to take a big hit.

Target Australia will begin to close down stores over the next five years, decreasing its 305 locations by 20 per cent.

Since Target’s $195 million loss in 2016, Wesfarmers CEO Guy Russo has been re-engineering the brand. The discount department store will slowly build to a mid-tier boutique retailer (meaning less Target and more Tarjay) in a bid to compete with H&M, Uniqlo and Zara.

Speaking to investors, Russo said: “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,”

Russo also stated that some Target locations could be converted to Kmart stores in some cases. Staff facing job losses may also be moved to Wesfamers’ other businesses, including Officeworks.