What is the future for Port Macquarie's Target?
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Owner Wesfarmers has acknowledged its plan to significantly reduce its Australian footprint but has fallen short of indicating what that means for specific stores, including the Port Macquarie outlet.
The news about Target's future follows Woolworths outlining its plans to close around 30 of its Big W outlets across its Australian network.
The Big W closures represent about 16 per cent of the business.
Wesfarmers announced in June last year that they would be closing dozens of their 305 Australian stores, and downsizing several others, to reduce their total footprint by up to 20 per cent.
Wesfarmers also own Kmart and Officeworks, which both trade in Port Macquarie.
The decision to close a number of its outlets came on the back of Target running at a loss of $195 million in 2016.
The downsizing would also include the brand shifting to a mid-tier boutique along the lines of H&M, Zara and Uniqlo. That would see the Target brand not competing with the likes of Big W or Kmart.
Wesfarmers' CEO of department stores Guy Russo confirmed to Fairfax the brand was shifting focus.
"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," Mr 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.
- Wesfarmers CEO Guy Russo
More recently Mr Russon told investors that staff at closing Target stores could be moved to one of Wesfarmers' other brands, such as Kmart or Officeworks, but acknowledged this was not always possible in regional towns.
"Where it's a little sadder is when it's in the country town and there is no other retailer," he said.
While the future of the local outlet remains clouded, a Target spokesperson provided a brief response to several questions about its future in Port Macquarie.
"It is business as usual for Target, and all stakeholders will be communicated with well in advance of any planned change to Target's store network," the spokesperson said.
"We look forward to continuing our relationship with the communities where we operate and remain committed to providing our customers quality fashion and basics at low prices.
"As always, and with great respect, our team members will be communicated with first if there are any planned changes to our stores."