Creating a New Image !

The Deputy Leader of the National party has called for a boycott of Target branded stores after owner Westfarmers announced that the struggling brand would either close or be converted to a new operational entity.  Target runs 167 mainly country stores and 1300 jobs are at risk.

It is quite obvious that if customers heed  David Littleproud's call it will mainly ensure that this modification plan will occur more swiftly.  As things stand, Westfarmers intend to convert  ninety-two stores to the K-Mart brand and the number of stores that will be closed is uncertain.

Economic forecasters have reported a loss of trade across the Target range for quite some time and this revision is not unexpected.   Many Australian clothing chains have been experiencing hard times and withdrawing from the market and the trend to buy discounted goods online is the component mostly blamed.

Selling mainly clothing is tricky business that relies on two things - price and fashion.  Most chain stores are discounters, but stores quickly gain an image in customers minds and it seems that the  image Target now has does not go down well with country customers.   In comparison, K-Mart which mainly operates in suburban city shopping malls is doing quite well and moving merchandise.  It has managed to create a different image to Target.

Perhaps the logical answer to the Target problem would have been an upgrade of the type of stock it was offering but that is a time consuming way of making change.  It seems country customers have rejected the Target image and no longer visit the stores.  When those hoardings go up announcing a brand new store the image counter is set in neutral and it awaits the customers reaction to the goods on offer.  Westfarmers are wagering that goods that sell well in the city will attract similar custom in country areas.

The SDA Union which covers workers in country areas believes a boycott will only make the situation worse, underpinning the efforts of both the SDA and Westfarmers to keep workers in the region in jobs and provide for their families.  Any business that fails to trade profitably is due to fail and it is now obvious that change is inevitable if Target is to be restored to good health.  The name will simply disappear and be replaced with a new entity offering a different range of merchandise.

At least this is a positive move in an age when some competitors are simply withdrawing from the market place.  Some of the pitfalls of internet shopping are becoming apparent to the public and the advantages of brick and mortar stores is being reinforced.   That old shibboleth of being able to actually handle the merchandise at the point of sale is again coming to the fore.  If Westfarmers have done their imaging well we are about to see a new era in country stores.