Australian Department Store Target Closes All Losses

It is understood that Australia

The company Target will take off toys, pet products and suitcases, and close all the loss items in the shop, such as coffee shops and playgrounds. The CEO GuyRusso of the company has brought Kmart back to life, and is currently taking the responsibility of adjusting Target business.

At the annual strategic meeting (Wesfarmersannualstrategybriefing) of the West China group, Russo said that a small number of Target stores would be pformed into Kmarts or stores. He said, "I don't like to close stores unless they are due to run out of business and run poorly, but I want to try to restructure this part.

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"There are very few Target stores that are converted to Kmarts," he said. "Most of them are in the same shopping mall."

When taking office, Russo said that 306 Target stores, nearly 1/3 lost 100-200 US dollars a year, 1/3 balance of payments, the remaining 1/3 profits, he said the rectification is intended to reduce losses.

He had vowed to restructure the Target business for 145 million dollars, but it is expected that the department store will lose 50 million dollars this year.

Russo thinks that the profit margin of Target can reach 10%. He said, "that's what I want to do."

To raise profits, we need to deal with some kinds of loss items. He said: "store products should be very careful, because consumers usually buy one year in advance, but we will start off shelves toys, pet products and suitcases.

We want to increase the proportion of clothing and home decoration products.

Target will also withdraw from the coffee shop and make more room for it.

Sale.

Children's playground will also be removed. "

On the whole, Target will lower prices to boost sales, reduce inventory of loss items, increase annual inventory of essentials, and lose all products on the shelves.

Russo said: "we do not sell loss products. We are lowering prices to increase sales.

Sales volume is the key to driving sales growth. Sales volume will increase and purchase inventory will also increase. This will help reduce procurement costs and further reduce prices.

It is widely believed that Australia's five major department stores, DavidJones, Myer, Target, BigW and Kmart, do not have enough market space for development, but Russo indicates that the target market value is US $80 billion and the two brands of Xi ` an group account for 8 billion US dollars.

He said: "I hope Target can become a retail giant of fashion products and divide the remaining about 70000000000 of the target market.

I don't know how others sell, but when walking on the streets of Sydney, almost all retailers are on sale. This shows that everyone is overstock and is too optimistic about the growth of retail sales, so they want to attract consumers into the shop through discount.

Retailers who normally play 80 percent off or 70 percent off are not likely to make profits.

IanBailey, general manager of Kmart, said that in the recent Australian retail market, there was a problem at the end of the winter season, that is, retailers had more and more discounts.

He said: "retailers are always overstock, and many retailers rush in, hoping for sales growth, but not every retailer's sales will increase. Eventually, the market will have a backlog of goods and have to sell at a discount."