Couldn’t agree more, Target was that sweet spot for me.
Interesting Hobart had two Target stores, one in a major shopping centre, which (from my understanding) was closed at lease end. It’s now a Woolworths.
The other is in the Hobart CBD, large slice of real estate…But shopping there over christmas, it just felt really tired. And really not the Target I remember.
I also noticed at my local Kmart, them actively promoting ‘click and collect’ for Kmart, and Target and Catch…The westfarmers brands flexing their muscle.
As mentioned above, they have rebranded Target stores as K Mart or shut them if they are too close to a K Mart. Many Target stores that remain are ones that are close to K Marts but are doing well enough on their own. If a Target store is struggling then it will shut at the end of lease.
Many malls still carry both a K and T. So with T converting 25% of its range to what Kmart already has, really does seem pointless leasing both areas in each store for the same thing. The aim appears to be improving the profitability of Target.
The question will be, will those who shopped Target homewares ranges buy the replacement Anko instead? Or perhaps go to Myer.
Really moves back to the point, at some point this century I would expect T to dissolve into K. The market will have two players, Kmart deals with all the no branded low price market, BIGW deals with the no branded plus branded market. Further consolidation no doubt in the Myer/DJs end at some point also.
Some of the appliance brands that used to be used at Target have now become brands in that space at Bunnings (Bellini in particular; once used for small appliances, now for cooktops and ovens and such).
Target is already dead, now it’s (very belatedly) been folded into the Kmart Group and in a good number of places it’s already just “a brand you can click-and-collect at a Kmart/K-hub” like Catch is. The future for all that side of things is further developing the Anko brand, and continuing to find places to export it to (such as to Canada, where Anko products are now the base offering of the Zellers sub-stores inside their Myer-equivalent, Hudson’s Bay).
Current management appear committed to the brand in a somewhat smaller scale. They have said this numerous times.
In regards to future management, well it’s the first thing I’d be looking at if it was me.
I guess an issue for them might be removing Target leases in top malls that carry a Kmart, but then BIGW gets the lease which in return cannibalises Kmart sales.
The joy of having two DDS within the group. Flog it off to Private Equity, let them kill it off instead.
I guess that would be another reason not to shut a Target store but if it becomes really unprofitable to have both then it’s a risk they might take. I mean if they realise there isn’t a market for two discount department stores then that would be a big risk for Big W to open in that space anyway.
In shopping centres where you have had all three like Hurstville, Target shut and was replaced by a TJ Maxx.
That’s another one that I’m skeptical around long term viability. The last one I went into it was half empty, and it’s just so bits and piecey. I walked away trying to work out how they actually make money here.
On the flip side, Costco seems to be booming. $5b in sales is quite a significant milestone, they are about to overtake BIGW in revenue. However, they have challenges trying to find leases so future growth remains to be seen.
Big W is just managing fine right now, if not a little slow, but far better than how they were about 7-6 years ago. They’re starting to open up new stores now so that’s got to mean something. and clearly they’ve found their own ground to compete against Kmart unlike Target.
Picked up a Sony branded radio with CD player in 2015 there at Big W… one you press on the top and can play a cd .
Found some Anko mens tshirts brand new at my local Vinnies. The quality of them surprised me still looks like new after wearing them … seem more like Target quality.
Noticed in one local discount store that the Christmas decorations had all been removed from the shelves and replaced with rabbits and Easter decorations. I thought that Valentines Day was the next big retail event.
I always thought the opening hours of the Chemist Warehouse near me were incorrect with their 24/7 hours. Just checked since the above article and they now close at 11pm.