Wesfarmers is taking a strategic step by merging its discount department stores Kmart and Target, to enhance performance and reduce losses amid challenges posed by high inflation.
While this merger may sound like a big change, Kmart and Target will continue to operate independently while preserving their distinctive stores and branding.
For buyers and dedicated employees of both stores, this merger will not affect them. Their shopping experience will be largely unaffected.
Let us tell you that both Kmart and Target are owned by the same company, Wesfarmers. This merger will strengthen their bond and streamline their operations.
Target and Kmart have been owned by the same company, Wesfarmers since 2007, as part of its acquisition of Coles Group Limited.
At the time, Coles, Kmart and Target operated as separate divisions within Wesfarmers. However, in 2018, Wesfarmers decided to split from Coles while retaining Kmart and Target.
The restructuring of both Kmart and Target will be run as one company with a market value of $10 billion.
Mr.Bailey says the company's focus is on "providing the best value products to thousands of customers". The merger is based on a customer-centric approach.
This new operating model is expected to unlock new levels of scale and productivity across both brands. Customers can expect a better shopping experience in the future.