Recession-like conditions: Kmart and Target are being infected by Australia’s retail malaise
The downgrades to Kmart and Target department store sales and earnings that Wesfarmers announced ahead of its annual strategy briefing today is consistent with the depressed state of consumer confidence and a weakening economy and adds to the pressure on the Morrison government to take action to stimulate growth.
Wesfarmers’ chief executive, Rob Scott, presented the negligible improvement in Kmart’s sales and decline in Target’s as a continuation of a trend but it’s not a positive or encouraging trend.
Kmart’s comparable store sales are down 0.2 per cent and Target’s 0.7 per cent for the year to date, even though Kmart’s performance has picked up modestly. In the first half of this financial year, its comparable stores sales were down 0.6 per cent. Sydney Morning Herald – Read more…