Breaking: Target will close 167 stores across Australia in coming months.

Some of the stores will be closed for good, while some will be converted to Kmart stores.

Parent company Wesfarmers today announced the major changes that will impact thousands of jobs and millions of customers.

The company said its new strategy was to move all of the discount stores to Kmart as they were more profitable and popular outlets.

“For some time now, the retail sector has seen significant structural change and disruption, and we expect this trend to continue,” Wesfarmers Managing Director Rob Scott said.

“With the exception of Target, Wesfarmers’ retail businesses are well-positioned to respond to the changes in consumer behaviour and competition associated with this disruption.”

The company said it would work with some staff to deploy them to Kmart stores.

“All team members in Target stores scheduled for conversion to Kmart will receive an offer of employment from Kmart,” the company told ABC News.

“Target team members affected by store closures will be given consideration for new roles created in Kmart and Catch as those businesses continue to grow,” they said.

Westfarmers announced the decision on Friday morning, saying 75 stores would close and 92 would become Kmart stores. The actions will be undertaken over the next 12 months.

Details of the Target and Kmart changes coming:

*Some Target & Target Country stores to become Kmart
*Closure of between 10-25 large Target stores
*Closure of 50 small Target Country stores
*Significant restructure of Target support office

*Restructuring=up to $170m
*Write-downs=up to $780m

More news to come


Ryan is Contributing Editor