Uncertain times Target’s SA workers as Wesfarmers reveals which stores will be closed and rebranded under major restructure
Wesfarmers has today revealed the SA Target stores to be closed or rebranded as Kmart outlets under a sweeping restructure that is likely to claim between 1000 and 1300 jobs nationwide. SEE THE LIST.
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Hundreds of workers at Wesfarmers’ South Australian Target outlets are facing an uncertain time after the group said between 1000 and 1300 jobs could be lost in a major shake-up of the underperforming discount brand.
Wesfarmers, which also owns the Bunnings, Kmart and Officeworks chain of stores, is taking the axe to its 284-strong Target network across Australia, slashing 10 per cent of its workforce.
On Saturday the company detailed which of its South Australian stores would be closing and those to be rebranded as Kmart outlets.
Five stores will be closing in SA, mostly in the regions.
Four stores will be rebranded (see below).
The Perth-based conglomerate, which is writing down nearly $1 billion in its full year accounts, said it will convert 10 to 40 Target stores and 52 Country Target stores in regional areas to Kmart stores.
It will also close 10 to 25 large format stores and 50 small format Target Country stores.
In all, between 122 and 167 locations will either be converted or shut, accompanied by a significant reduction in Target’s store support office.
South Australia has 24 Target stores, employing potentially hundreds of staff.
The Target Pasadena store will close at the end of the month, potentially becoming the home of US homewares chain TK Maxx.
The company informed staff on Friday, a Target spokeswoman told The Advertiser, declining to identify affected stores or outline the number of SA jobs impacted.
“All team members in Target stores scheduled for conversion to Kmart will be offered the opportunity to join the growing Kmart team, for other affected Target team members, we will work with them to identify and offer other redeployment opportunities in Kmart, Catch, Bunnings and Officeworks as these businesses continue to grow,” she said.
Wesfarmers CEO Rob Scott said many Target team members would be redeployed to Kmart or other parts of its business, but between 1000 and 1300 Target staff could lose their jobs as part of the Target restructure.
Mr Scott said the shutdown, which comes as millions of Australians face unemployment due to the coronavirus pandemic, was necessary to keep the business viable.
“It is really disappointing and it is really tough when people lose their jobs, and we have been focused on doing everything we can to reduce the impact,’’ Mr Scott said.
“Notwithstanding these difficult decisions and the job losses in Target we do expect across the Wesfarmers group that we will create more jobs in Australia over the next 12 months and what we really need to do is make sure our businesses are viable for the future.
The restructuring is expected to be implemented over the next twelve months with the majority occurring in calendar year 2021.
Sales growth, particularly at Target, has deteriorated as customer footfalls dropped in shopping centres and discretionary categories weaken due to social restrictions imposed to curb the spread of coronavirus.
Nationals deputy leader David Littleproud called for a consumer boycott of Wesfarmers.
“It just goes to show they don’t give a rat’s about us,” he told reporters in Toowoomba. “Australians should vote with their wallets and not go near them.”
Wesfarmers is one of Australia’s largest private sector employers with 111,000 staff.
With AAP