Australian department store Target has reported a drop in Q3 sales while sister brand Kmart continued its strong growth for FY 2018.
Target reported that total sales for the quarter were $544 million, a decrease of 2% on the corresponding period last year while comparable store sales decreased 2.6% from Q3 2017.
Wesfarmers department stores CEO Guy Russo said the results for the period reflected a reset of product, price and range.
“During the quarter the business continued to focus on improving fashionability and the quality of sales.
“While online sales increased and contributions across womenswear and menswear also improved, these were more than offset by declines in general merchandise as ranges were further reset.”
Kmart recorded a 10.2% increase in total sales on the corresponding period last year up to $1.2 billion while comparable store sales increased 7.7%.
Kmart managing director Ian Bailey said the business' success was driven by double digit unit growth for almost all categories.
“Sales performances through the third quarter was driven by an increase in customer transactions with all categories, except family entertainment achieving double digit unit growth.
“This was the result of Kmart's continued focus on maintaining price leadership as well as an improved product offering.
“Core everyday ranges continued to perform well, as customers responded to price investments throughout the year.”
During the quarter, Kmart completed four store refurbishments and opened three new stores including one rebranded from Target.