Kmart confirms 65 more Target conversions
Large and small stores to undergo re-branding.
Wesfarmers has confirmed the conversion of a further 19 large format Target stores to Kmart, adding to the recent changeover of 12 Target stores.
The company said it will also convert 46 Target Country stores to K Hub small format stores in the second half of its financial year.
In its first half results presentation, Wesfarmers said that in an “uncertain and volatile environment”, the Kmart Group is well-positioned for the future although current global supply chain disruptions are expected to continue.
Kmart reported 1H revenue growth of 5.7 percent to $5.1 billion.
The company said Kmart earnings were impacted by temporary store closures and additional in-store cleaning, PPE and security costs due to COVID-19.
The company incurred costs of around $100 million related to store closures and conversions.
BIG W first half sales up 20 per cent
Meantime, rival retailer Woolworths today announced first half sales growth of 20 per cent for its BIG W chain.
The company said sales increased in all destination areas and were buoyed by seasonal sales events such as Halloween, Click Frenzy, Big Sale (Black Friday) and Christmas.
E-commerce sales through BIG W X increased by 120 per cent, with penetration in H1 of 9.5 per cent. EBIT growth was driven by strong sales, gross margin improvements and good cost control despite higher COVID-related costs.
Date Published:
25 February 2021