Australia Target will remove toys, pet supplies, luggage and other categories

Hugo.com learned from recent reports from foreign media that Australian department store Target will remove toys, pet supplies, suitcases, and close all loss-making projects such as coffee shops and playgrounds in the store. The company’s CEO Guy Russo once Bringing Kmart back to life, it is now also taking on the important task of adjusting Target's business. At the Wesfarmers annual strategy briefing (Wesfarmers annual strategy briefing), Russo said that a small number of Target stores will be converted to Kmarts or closed. He said: I don’t like closing stores unless the lease is about to expire. And it’s a poorly-operated store, but I want to try to reorganize this part of the business. He also said: There are few Target stores converted to Kmarts, and most of them are in the same shopping mall. When he took office, Russo said that nearly one-third of the 306 Target stores lost $1 to $2 million per year, one-third broke even, and the remaining one-third were profitable. He said that the rectification is aimed at reducing losses. He once vowed to reorganize Target's business for US$145 million, but expects the department store to lose US$50 million this year. Due to a large number of winter stocks to be cleared, gross profit is low. Russo believes that Target's profit margin can reach 10%. He said: That's what I want to do. To increase profits, it is necessary to remove certain loss-making categories. He said: You must be very careful when you remove products from stores, because consumers generally buy them a year in advance, but we will start removing toys, pet supplies, and suitcases. We want to increase the proportion of apparel and home decoration products. Target will also withdraw from the coffee shop to free up more space for apparel sales. The playground in the children's area will also be removed. On the whole, Target will lower prices to increase sales, reduce inventory of loss-making products, increase annual inventory of necessities, and remove all loss-making products. Russo said: We do not sell loss-making products, we are reducing prices to increase sales. Sales volume is the key to driving sales growth. As sales increase, the amount of inventory purchased will also increase, thereby helping to reduce procurement costs and further lower prices. It is generally believed that the five major Australian department stores-David Jones, Myer, Target, Big W, and Kmart do not have enough market development space, but Russo said that the target market is worth US$80 billion, and the two brands of the Sino Group account for 8 billion US dollars. He said: I hope that Target can become a fashion product retail giant and divide up more than 70 billion in the target market. I don’t know how other people are selling, but when walking on the streets of Sydney, almost all retailers are discounting, which shows that everyone has too much inventory and is too optimistic about retail growth, so I want to attract consumers to buy through discounts. . Generally, retailers with a 20% or 30% discount are unlikely to be profitable. Ian Bailey, general manager of Kmart, said that in the recent Australian retail market, there is a problem at the end of the winter season, which is that retail discounts are increasing. He said: Retailers always have too much inventory, and many retailers come in, hoping to increase sales, but not every retailer's sales will increase. After the **, the market has a backlog of goods and has to be sold at a discount. (Compilation/Hugo Net Fang Xiaoling)