Target and Kmart have merged to create a dual-brand retail giant worth $10 billion as the two companies make the most of the cost of living crisis.
Wesfarmers, which owns both Target and Kmart, announced Monday that the two companies will be under one operation.
A spokesperson for Wesfarmers told NCA NewsWire that the change will only affect internal controls for both brands, with back-end support personnel managing both retailers.
Consumers and retail staff have been assured that there will be no noticeable changes in stores.
Ian Bailey, Kmart’s marketing director, will remain running the expanded company.
Kmart CEO John Gualtieri will run both stores on a day-to-day basis, while the brand’s chief financial officer, Alex Spadesca, will take over the sourcing, assets and dual-brand international supply chain.
There are also a number of planned layoffs in the backend administration department, which are expected to occur in the areas of technology and products.
Bailey said that while some jobs have been lost, brands “will end up with more jobs in a year’s time.”
“Both Kmart and Target are strong businesses.
“I would say we are strong, but I think we have an opportunity to find ways to make the most of this time and continue to provide better value to our customers.
“What we discovered was that it was very difficult to bring technology to Target and reap the benefits of running two businesses. This is the real reason we decided to combine the two businesses into one.”
Rising cost of living could affect Kmart and Target as Australians look to discounted products amid soaring prices.
“I think value has really been pushed to the fore for a long time,” Bailey said.
“What we see is that if we can consistently sell good products at affordable prices, there is enough demand.”
https://thewest.com.au/business/kmart-and-target-to-merge-into-dual-brand-retail-giant-c-11375007 Kmart and Target merge into dual-brand retail giant