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Target Australia

Target Australia is an Australian retail chain specializing in affordable apparel, homewares, toys, and general merchandise, operating as a mid-market . Founded in 1926 as a drapery store in , , by George Lindsay and Alex McKenzie, it has grown into a prominent brand under the ownership of since 2007, when Wesfarmers acquired Limited. As of 2025, Target Australia maintains approximately 124 stores across the country and employs around 10,000 team members, with additional product sourcing operations in to support its . The company's early expansion occurred after its 1957 acquisition by Geoff Betts and John Wade, leading to 14 stores in by 1968, when Emporium Ltd purchased it and renamed it Lindsay’s Target Pty Ltd. In 1973, it officially became Australia Pty Ltd, marking its rebranding as a national retailer. Further growth included a 1985 merger with G.J. Coles & Coy Ltd to form Coles Limited, and a 1996 acquisition of the Fosseys chain, with many stores converted to by 1999. These developments solidified its position in the Australian retail landscape, focusing on value-driven shopping experiences. Today, Target Australia offers a diverse range of products including women's, men's, and ; baby essentials; and items; home furnishings; and seasonal gifting options, all accessible both in-store and online. As part of the Group, it emphasizes ethical sourcing, diversity, and community engagement, while navigating recent challenges like store optimizations to ensure financial sustainability.

History

Founding and early years

Target Australia's origins date back to 1926, when George Lindsay and Alex McKenzie established a drapery store in , , under the name Lindsay and McKenzie. The business initially operated as a retailer of dress fabrics, manchester (bedding and linens), and furnishings, serving local customers in the regional area. This venture laid the foundation for what would become a major discount retail chain, beginning as a modest operation focused on value-driven sales in the post-World War I era. The company transitioned toward retailing in the mid-20th century, capitalizing on growing consumer demand for affordable goods. In 1957, local entrepreneurs Geoff Betts and John Wade acquired the business, reorienting it toward a model that emphasized low prices on everyday items. Under their leadership, Lindsay and McKenzie expanded rapidly from its single location to 14 stores across by 1968, introducing formats and surplus stock strategies to appeal to budget-conscious shoppers. This period marked the company's shift from traditional to broader operations, with an emphasis on accessible merchandise for middle-class families. In 1968, Myer Emporium Ltd purchased the chain, recognizing its potential in the burgeoning sector, and began rebranding the stores as to evoke the efficient, value-oriented image of the unrelated American retailer —adopting a similar bull's-eye while remaining fully independent. The first stores under the Target banner opened in existing Lindsay's locations in and surrounding areas, prioritizing affordable apparel, household goods, and toys to cater to family needs. By March 1973, the company was formally incorporated as Target Australia Pty Ltd, solidifying its identity as a national during a phase of steady early expansion.

Coles Myer period

In August 1985, Emporium Ltd and G.J. Coles & Coy Ltd merged to form Coles Ltd, integrating as a key discount department store division within Australia's largest retail conglomerate. At the time of the merger, operated approximately 68 stores, primarily concentrated in , , and . Under Coles Myer ownership, Target experienced significant growth through the late and , expanding its footprint to include all Australian states and territories by the early 2000s. Sales and profits increased by more than 50 percent from 1985 onward, positioning as one of Coles Myer's strongest performers amid a competitive landscape. This national scaling emphasized value-for-money positioning, building on 's foundational model from earlier decades, with further additions driven by strategic acquisitions and new openings in regional areas. A notable operational change occurred in 1996 when Coles Myer merged Target with the Fosseys chain, converting Fosseys outlets into stores by 1999 to enhance family apparel offerings in rural and regional markets. This integration added dozens of locations and broadened Target's reach beyond urban centers. In parallel, Coles Myer introduced specialized formats to target niche segments; the first Baby Target stores opened around 1996-1997, focusing exclusively on and products to capture growing demand in that category, though the concept saw limited long-term adoption. Target achieved profitability peaks in the mid-, benefiting from economic expansion and effective merchandising, but faced intensifying competition from discount rivals like by the early 2000s, leading to margin pressures within the Coles structure. Store redesigns during the prioritized brighter layouts and improved product presentation to reinforce the brand's affordable, family-oriented appeal.

Wesfarmers ownership and recent developments

In November 2007, acquired for A$19.3 billion in Australia's largest corporate at the time, bringing under its ownership as part of the deal and integrating it into the alongside , while aligning it broadly with the portfolio for enhanced operational synergies. This acquisition positioned within ' diversified retail structure, emphasizing apparel, homewares, and general merchandise to leverage group-wide efficiencies in and digital capabilities. During the 2010s, Target experienced revenue growth, reaching approximately A$3.8 billion by fiscal year 2019, yet faced mounting challenges including a first annual loss of A$195 million in 2016 and subsequent impairments totaling over A$1 billion by 2020, driven by intensified competition from online retailers and its sister brand . These pressures highlighted the need for strategic repositioning amid subdued consumer spending and a shifting landscape. In response to ongoing underperformance, announced a major restructuring in May 2020, planning to close or convert up to 167 Target and Target Country stores—specifically 75 closures, including all 52 Target Country locations, and up to 40 conversions to formats—resulting in a roughly 30% reduction of its store footprint from around 284 outlets. This move aimed to streamline operations and improve viability, with most changes implemented by 2021. Post-restructuring recovery efforts gained momentum in 2024-2025, including store remodels featuring new designs that incorporate art, such as the "Family Tides of Unity" artwork created by young Indigenous designers from Indigenous Design Labs in . This initiative, part of the Deadly Stores program supporting 36 locations in high communities, was unveiled in October 2024 and rolled out starting November 2024 to foster cultural reconciliation and community engagement. By September 2025, operated 124 stores and announced a strategic shift to reposition as a value brand, introducing higher pricing on select items to differentiate from low-cost competitors and target quality-focused shoppers.

Retail operations

Current store formats and network

Target Australia's primary store format consists of standard department stores that offer a wide selection of apparel, homewares, toys, and electronics. These outlets are designed to provide affordable, everyday essentials in a convenient department store setting. As of September 2025, the company operates 124 stores nationwide, primarily in urban and suburban locations across all Australian states and territories. This network ensures broad accessibility for customers while focusing on high-traffic areas to maximize footfall. In addition to the standard format, maintains a smaller network of larger stores, retained after the 2021 rationalization of underperforming sites. These supersized locations feature expanded offerings, including larger seasonal merchandise sections to cater to one-stop needs. A key recent development is the nationwide rollout of -themed store enhancements, initiated in 2024. This initiative incorporates artwork titled Family Tides of Unity, created in collaboration with artists, displayed across the 36 stores in Target's Deadly Store Network to promote cultural inclusion and principles. Target has strengthened its omnichannel presence with features like in-store pickup for online orders, enabling seamless integration between digital and physical shopping. In 2025, the company invested further in digital fulfillment hubs to support this strategy, enhancing efficiency and customer convenience across its retail operations.

Former store formats and closures

Target Australia has experimented with several specialized store formats over the years to cater to specific customer segments and regional needs, though many were eventually discontinued as part of broader operational rationalizations. One notable example was the Target Country format, which consisted of smaller stores (typically around 1,000 square meters) focused on rural and regional communities with localized merchandise selections, including apparel, home goods, and essentials tailored to non-metropolitan areas. Rebranded in 2001 from the Fosseys chain, the format had approximately 116 stores by the end of the 2009 fiscal year, complementing the larger full-line outlets. By 2020, amid ongoing challenges in the sector, announced a major restructuring that included exiting the Target Country format entirely to simplify its and address structural inefficiencies. This involved converting about 52 Target Country stores into small-format Hubs, while closing the remaining 50 outlets, with most actions completed by mid-2021 as part of cost-cutting measures. The closures were driven by 's unsustainable financial performance, including annual losses of around A$200 million, exacerbated by retail disruption and competition. In addition to the Target Country phase-out, the 2020 announcement encompassed broader network changes, including the closure of 10 to 25 large-format stores and the or rationalization of up to 75 sites overall, many of which transitioned to formats where viable. These moves affected up to 167 stores in total (combining closures and conversions), putting approximately 1,300 jobs at risk, and were implemented primarily over to enhance commercial viability and accelerate growth in stronger brands like . The restructuring incurred significant costs, including A$120–170 million in pre-tax expenses for closures and inventory write-offs, alongside A$430–480 million in non-cash impairments.

Products and merchandising

Core product categories

Target Australia's core product categories center on apparel, homewares and furnishings, and , and a selection of other merchandise designed to provide affordable everyday essentials for families. The retailer emphasizes value-oriented assortments across its 124 stores and online platform, drawing on shared merchandising strategies within the Group to offer quality products at competitive prices. Apparel forms a key pillar, encompassing women's, men's, and that includes basics such as t-shirts, jeans, and activewear, alongside seasonal trends like summer dresses and winter coats. Own-brand lines, notably Anko, feature prominently in this category, providing stylish yet budget-friendly options that align with contemporary needs. The assortment also incorporates petite and maternity ranges to cater to diverse segments. Homewares and furnishings represent another major focus, offering , , bathroom accessories, and decorative items to enhance living spaces. Target prioritizes affordable, functional products, including Australian-made textiles and where possible, to support local while maintaining low prices. This category appeals to budget-conscious consumers seeking practical solutions for home refreshment. Toys and entertainment products include a broad selection of branded toys, board games, puzzles, and basic electronics like headphones and gaming accessories, targeting children and families. Partnerships with global licensors enable access to popular characters and themes, ensuring engaging options for play and leisure. The range extends to educational toys and outdoor play items, promoting developmental benefits alongside entertainment value. Additional categories such as , fashion accessories, limited non-perishable groceries, and seasonal merchandise round out the offerings, providing one-stop convenience. Cosmetics feature everyday essentials from national brands, while accessories include bags, jewelry, and footwear. Seasonal goods, like holiday decorations and back-to-school supplies, are curated to address timely consumer demands. Sourcing for these categories relies heavily on international suppliers in —primarily through offices in , , and —for cost efficiency, supplemented by local production to meet quality and standards. Private labels constitute a substantial portion of , enabling better cost control and differentiation through exclusive designs. Exclusive lines occasionally integrate into the apparel assortment to elevate style options without dominating the core value focus.

Designer collaborations

Target Australia's designer collaboration program, known as "Designers for Target," was launched in 2007 with an exclusive collection by , introducing affordable interpretations of high-end fashion to the retailer's apparel and homeware offerings. This initiative aimed to elevate the brand by partnering with prominent international and local designers, creating limited-edition lines that blended luxury aesthetics with accessible pricing. Early collaborations set a precedent for rapid sell-outs and heightened customer interest, establishing the program as a key strategy. Key past partnerships included Collette Dinnigan's 2012 children's wear collection, inspired by The Australian Ballet's 50th anniversary and featuring ballet-themed tutus and apparel for young girls. That same year, collaborated on a women's capsule of 42 pieces, encompassing daywear, eveningwear, swimwear, and with signature animal prints and glamorous cuts, launched across 136 stores. In 2014, delivered its largest collaboration to date with over 220 items for women, men, children, and home, incorporating iconic zigzag patterns and bold colors in an Australia-exclusive range that caused website crashes due to high demand. Additionally, Dannii Minogue's Petites line, launched in 2014, provided tailored clothing for women under 160 cm in sizes 4P-16P, focusing on everyday essentials like jeans and dresses priced under A$90, and remains an ongoing partnership celebrating its 10th year in 2024. More recent efforts have emphasized emerging and culturally significant talent, such as the 2012 kids' denim collection featuring signature distressed jeans and streetwear staples. In 2023 and 2024, Target prioritized designers through partnerships like the limited-edition summer apparel with Cungelella Art, a collective led by four sisters, incorporating cultural motifs into women's and . This continued into late 2024 with initiatives such as the "Family Tides of Unity" artwork by young designers from , displayed in 36 Deadly Stores to support Aboriginal and Islander communities, alongside a collaboration with Warlukurlangu Artists Aboriginal Corporation. These collaborations typically feature limited runs of 4-6 weeks to generate urgency and exclusivity, with items priced between A$20 and A$200, driving significant sales spikes—such as the launch attracting over 100,000 online visitors pre-launch and achieving immediate sell-outs. Pre-2020, Target pursued multiple designer partnerships annually, but post-COVID restructuring and store closures led to a scaled-back approach, focusing on fewer, higher-impact projects that integrate with core apparel categories for sustained brand elevation.

Corporate affairs

Ownership and governance

Target Australia is a wholly owned subsidiary of Limited, having been acquired in 2007 as part of the purchase of the . It operates as part of the Kmart Group within ' retail portfolio, which encompasses and Target Australia as key divisions. Limited, the parent company, is publicly listed on the Australian Securities Exchange under the ticker symbol ASX: WES. Governance of Target Australia falls under the oversight of the and senior executives, ensuring alignment with group-wide strategies on , , and performance. The overall Wesfarmers group is led by Managing Director and Rob Scott, appointed in 2017. At the divisional level, is managed within the Group, headed by Managing Director Aleksandra Spaseska since 1 April 2025, following her progression from Deputy Managing Director and roles. In the 2024 financial year, Target Australia reported revenue of A$2.139 billion, representing a 4.5% decline from the prior year amid challenging retail conditions, though it contributed to the broader Group's revenue of A$11.1 billion. The company's operations are subject to Australian Consumer Law under the Competition and Consumer Act 2010, with compliance integrated into ' annual reporting and sustainability framework, which emphasizes ethical sourcing, environmental targets, and corporate transparency. Target Australia employs approximately 10,000 staff members across its network of stores and corporate headquarters located in , . This workforce supports daily retail operations and strategic initiatives under the unified Group structure.

Sustainability and community initiatives

Target Australia, as part of the Kmart Group, has committed to achieving 100% renewable electricity across its operations by the end of , supporting broader efforts to reduce environmental impact in retail settings. As of September , the Kmart Group was nearing this target, with achievement expected by December . This aligns with ' overarching ambition to reach by 2050, including carbon footprint reporting for its retail divisions. Additionally, Target has committed to increasing sustainably sourced for its own-brand products, primarily through the . In its supply chain practices, Target conducts ethical sourcing audits through third-party providers, covering 100% of suppliers for own-brand apparel in 2025 to ensure compliance with labor standards and prevent modern slavery. These audits focus on fair labor conditions, particularly in where much of the apparel is produced, with mechanisms in place across 1,935 supplier sites in 15 countries, protecting over 849,000 workers. Target's Ethical Sourcing Code mandates minimum standards for suppliers, including adherence to local laws and environmental practices, as part of ' group-wide policy. Target supports initiatives through strategic partnerships and direct investments, notably an ongoing collaboration with the Australian Childhood Foundation since 2021, providing an annual commitment of A$250,000 to expand the Bringing Up Great Kids program for vulnerable families. This partnership has raised over A$1 million to date, focusing on family wellbeing and services. The company also fosters employee engagement in local groups, building connections that enhance social support networks across . Cultural initiatives include the Deadly Store Network, established in communities with high First Nations populations to promote cultural awareness, Indigenous employment opportunities, and respectful environments, with over 120 stores participating group-wide. In 2024, Target launched bespoke Indigenous artwork titled "Family Tides of Unity" in 36 Deadly Stores, commissioned from artists to celebrate Aboriginal and Islander cultures and strengthen community ties. Target's reconciliation efforts are guided by Wesfarmers' Elevate Action Plan (2022–2025), which emphasizes sustainable Indigenous employment, career progression, supplier diversity, and community partnerships to reflect diverse communities in its workforce. Under this plan, the group aims to deliver more than 120,000 instances of cultural awareness training to build respectful workplaces and advance . Target actively supports these goals through its Deadly Stores and Indigenous artist collaborations, contributing to broader cultural engagement.

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