Almost half of Target’s stores made a loss in 2016 and 2017 and they have decided to take action.
They have just announced a plan to reduce their store footprint by 20% over the next 5 years and focus on fashion. Dozens of stores will close as Target take on the fast-fashion giants - H&M, Zara, and Uniqlo.
Target will concentrate less on space and create a “boutique” fashion chain designed to focus on quality at a lower price than their competitors. They will shift away from their position as a competitor to K-Mart and Big W which has seen them lose customer focus.
Some of their stores will transfer over to the more profitable stablemate in the Wesfarmers group, K-Mart. The plans have been announced by Guy Rosso, Wesfarmers CEO of Department Stores, who led K-Mart to its current powerhouse position.