Wesfarmers to reposition Target
In this article (5)
In a move to differentiate itself from sister brand Kmart, department store Target will see an accelerated transformation to offer higher quality apparel, soft homewares and toys.
This shift will reposition the department store to compete against more specialty and middle-market offerings, and could keep Kmart and Target from potentially cannibalising one another’s sales.
As a result, however, approximately 80 head office roles have been restructured. A Target spokesperson confirmed it is aiming to redeploy some of these staff into other parts of its business, or into the wider Wesfarmers group.
Kmart Group managing director Ian Bailey said he believed it was the right time to recast Target against higher-quality competitors such as Cotton On, Myer, or Country Road, though at a more affordable price.
Questions & Answers
Q.What kind of products will Target focus on selling after this transformation?
What kind of products will Target focus on selling after this transformation?
Target will accelerate its transformation to offer higher quality apparel, soft homewares, and toys. This new focus aims to differentiate it from its sister brand, Kmart, and compete in a different market segment.
Q.Why is Wesfarmers repositioning Target in this way?
Why is Wesfarmers repositioning Target in this way?
The repositioning aims to differentiate Target from Kmart and prevent sales cannibalisation between the two brands. It will allow Target to compete against more specialty and middle-market offerings at a more affordable price point.
Q.Which competitors is the new Target strategy designed to challenge?
Which competitors is the new Target strategy designed to challenge?
The Kmart Group managing director, Ian Bailey, indicated Target will now compete against higher-quality retailers. These include brands such as Cotton On, Myer, and Country Road, but at a more affordable price.
Q.What is the impact of this restructuring on Target's employees?
What is the impact of this restructuring on Target's employees?
Approximately 80 head office roles have been restructured as a result of this change. Target is aiming to redeploy some of these staff into other parts of its own business or elsewhere within the wider Wesfarmers group.
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