週First, Rob Scott, the operations director of XI Nong Group, confirmed at a press conference that under the group’s new strategy,Target may gradually disappear in Australia.
Although Scott denied the rumors of a full merger of the two stores, he said that for the overall interests of the group,Target's store may be changed to Kmart.The reason is, of course, Target's poor performance.
Since Xinong Group purchased Kmart and Target in 2016, the pillars of these two department stores and home furnishing categories have risen rapidly, while the other has gone downhill. In 2017, Kmart’s profitability increased from 2011’sA$40 billion to A$55.8 billion, And Target started from 2011A$38 billion fell to A$29.5 billion today. Target, whose sales are in trouble, has suffered from"Non-cash loss" of A$3 millionDue to poor performance,Two stores in Broadmeadows and Templestowe in Melbourne have been converted to Kmart, and another Target in Western Australia is also in the process of being remodeled.A retail expert from Queensland University believes thatIn the near future, more Targets may be closed one after another, and the remaining Targets will be changed to Kmart.For this speculation, Rob Scott, the director of operations of the China Agricultural Group, did not deny it.
He said: "Kmart's sales performance in the past six months has been very satisfying to us. Our future focus is also on Kmart, but Target's prospects are not so optimistic. In the future,Target's scale may be greatly reduced, and it may become a model that sells a small number of products in a small number of stores, for a small number of customers. "
In fact, Target is a century-old store in Australia. It was created by George Lindsay and Alex McKenzie in 1926,The first store is in Geelong, VictoriaAt that time, it mainly sold fabrics and furniture. After these years of development, Target has a total of303 storesHowever, with the intensified competition in the retail market and consumers' pursuit of high quality and low prices, Kmart, which is geared toward the low-end consumer market, has risen rapidly, while Target, which focuses on the mid-end consumer market, has suffered a great impact.
Coupled with the chaotic layout and unclear positioning of Target stores, Kmart is dominated by its own hot-selling products, closely following the trend of home decorations, and the prices are relatively low, so it is becoming more and more popular with consumers. Now there are 220 stores.
I don't know if one day, Target will not escape the doom of a complete bankruptcy...
News compiled from "Daily Mail, news.com.au"
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