Target and Kmart on the up

NATIONAL:Target and Kmart parent company Wesfarmers has announced that both retailers posted improved results in the first quarter of 2008.

In a statement to shareholders earlier this month (April) the company confirmed Target sales were up 9.2 per cent and Kmart up 5.0 per cent on the same period the previous year.

Total sales of the Target business for the three months ended March 31 2008 increased by 9.2 per cent on the previous corresponding period. Store-on-store sales of the Target business for the period from December 31, 2007 through April 13, 2008 increased by 5.4 per cent, compared to the same period in the previous year.

Sales for this period were driven in part by a new advertising campaign, Easter trading and promotional events, although they were also offset by unseasonably warm weather in March, waning consumer confidence and tough trading conditions, Wesfarmers said. 

Total sales of the Kmart business for the three months ended March 31 increased by 5.0 per cent, compared to the same period in the previous year. Store-on-store sales of the Kmart business for the three months ended March 31 and for the period from December 31 2007 through April 13 2008, increased by 5.0 per cent and 2.9 per cent respectively, compared to the same respective periods in the previous year.

Sales for this period were driven by a strong winter clothing launch, strong sell-through of summer products and good sales of Easter products. However they were offset in part by aggressive competition and the impact the uncertainties of the current economic climate.