Discount department store Target has seen top-line sales decrease by 6.2% in the first half of the financial year.
Same store sales also decreased by 6.5% for the six months to December 31, 2017.
Wesfarmers department store division CEO Guy Russo said this is due to a continuing overhaul of product and price across womenswear, toys and general merchandise.
“The second-half will not be as dramatically down as the first,” Russo said.
Russo expected sales to improve over the next year, with growth already recorded in menswear and womenswear.
The lower Target revenue was offset by improved trading margins through increased levels of direct sourcing,
lower levels of markdown and a favourable sales mix.
Meanwhile, sister brand Kmart continues to outpace the retailer, clocking an 8.6% increase in sales and a 5.4% increase in same store sales.
It now has more than 10.5 million customers with transactions growing by more than 77 million.
Russo said continued investment in price resulted in higher customer transactions and units per basket.
Parent company Wesfarmers confirmed it would replace more Target stores with Kmart sites.
It opened five new Kmart stores and six previously approved Target stores during the period, closing an additional two Target locations.