Kmart and Target are being turned into a “dual-brand retail giant”, the headlines trumpeted. Visions of store closures, favourite brands disappearing, less choice.
But rest easy – for now at least. The chains, both owned by Wesfarmers, are being turned into a single $10 billion business. However, from a customer perspective, things will look the same – the stores will keep their names and remain separate.
So why the headlines? News.com.au reports that Kmart and Target offices, technology and other back end processes that customers don’t see will be combined. Plus, there would be a “handful of redundancies”. Goes without saying really.
Kmart Group managing director Ian Bailey said in a statement: “The announcements today are an internal reorganisation of our support offices and there are no impacts to the Kmart or Target stores.
“With customers now demanding value more than ever, this new operating model will unlock a new level of scale and productivity across both brands, so we can deliver even greater value to our customers in the future.”
Are you loyal or one or the other? Or wherever the bargains are?
