May 22, 2020
UPDATE: Target has advised the Murgon store will close in “early-mid 2021”.
EARLIER:
There’s a shadow hanging over the future of the Target Country store in Murgon following an announcement on Friday that up to 75 Target stores could close around Australia.
In a statement to the ASX, Wesfarmers Limited – the owner of Target and Kmart – announced a major restructuring of its store network.
After a review, it had been decided to “address the unsustainable financial performance of Target” by:
- Converting between 10 to 40 large-format Target stores to Kmart, subject to landlord support
- Converting about 52 Target Country stores to small-format Kmart stores
- Closing between 10 and 25 large-format Target stores
- Closing 50 Target Country stores which are not suitable for conversion to Kmart.
Wesfarmers has not disclosed which Target stores it intends to convert or which it intends to close.
The restructure and closures are expected to cost Wesfarmers between $120 and $170 million before tax, including the write-off of inventory.
The statement said “redeployment opportunities” for Target staff members in Kmart and other Wesfarmers businesses would “minimise the effect of these changes on Target team members”.
Wesfarmers intends to increase its investment in online sales, including its Catch website via home delivery or click and collect.
The Target Country store in Lamb Street, Murgon, is currently listed for sale via Knight Frank in Brisbane:
“100% leased to Target Australia (Wesfarmers), this is a great entry level investment opportunity. The property has been recently refurbished to a high standard and consists of 535sqm of GLA. The property is being offered as a leaseback to Target Australia on a new 3 year lease with 5×3 year options. The lease will commence upon settlement at $60,000+GST per annum gross.”
The Target Country store in Kingaroy closed in 2015.
Wesfarmers has been approached for comment.
