Two of Australia’s most identifiable retail names are poised to become even more inextricably linked through a merger that will result in a US $ 10 billion discount behemoth.
Wesfarmers, which owns Kmart, plans to merge Target and Kmart in the goal of increasing sales and allowing the department shops to share backend technology.
Customers, on the other hand, should not notice much of a difference, with Kmart Group managing director Ian Bailey pledging “no impacts” to stores.
Instead he described the move as an “internal reorganisation” following years of operating the two separate businesses closely together.
“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,” Bailey said, in a statement.
The change, announced to employees, comes as the cost of living issue compels Australians to become increasingly price aware.
Bailey, in particular, emphasised the technological benefits of tighter integration, citing a price cut on 1000 Kmart products announced earlier this month, which he said was aided by merchandising planning tools and a self-navigating inventory scanning robot.
