NATIONAL: Not even the launch of its Stella McCartney fashion range could prevent Target's apparel sales taking a hit in the second quarter of 2010/11.
The discount department store's parent company, Wesfarmers, revealed second quarter retail sales for Target amounted to $1.3 billion, down 4.2 per cent on the second quarter of 2009/10.
The period included the unveiling of the special edition Stella McCartney for Target fashion collection, which landed in 102 stores nationally on October 29, 2010.
Meanwhile retail sales in Wesfamers' other discount department store, Kmart, totalled $1.38 billion for the second quarter, up 0.8 per cent on the prior corresponding period.
Wesfarmers managing director Richard Goyder explained there were two elements that impacted sales.
“Sales growth in Kmart and Target was affected by a strong deflationary pricing environment and unseasonal wet and cool weather on the east coast of Australia that particularly affected summer apparel sales in Target,” Goyder said.
“Pleasingly, within this environment both businesses recorded positive transaction growth, particularly Kmart as customers responded well to its repositioned offer.”
Wesfarmers currently operates 171 Target stores nationally, as well as an additional 119 Target Country stores. 2010 marked the second time the retailer invested in a Stella McCartney for Target collaboration, with the first unveiled in Target stores in 2007.
Wesfarmers also has 186 Kmart stores in operation across Australia.