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Wesfarmers has detailed polar opposite outcomes for sister brands Target and Kmart.

Both discount department stores released retail sales results for the first quarter of the 2014 financial year earlier this week, with Kmart looking up but Target worse for wear.

Target saw total sales of $789 million for the quarter, 6.1 per cent below the previous corresponding period, with comparable store sales also decreasing 5.2 per cent.

Target managing director Stuart Machin said that, as previously outlined, trading for the first quarter had been challenging, reflecting the continued clearance of excess winter inventory which delayed the launch of the spring / summer range.

“Sales were significantly affected by high levels of clearance activity and the non-repeat of the promotional activity of the prior corresponding period. As a result of this clearance activity winter inventories declined significantly during the quarter. Positively, where improvements have been made to ranges and price architectures, customers have responded favourably to the enhanced offers.

“During the quarter we completed further Christmas range reviews, and a major focus area remained the revitalisation of the senior leadership team. Importantly, the majority of new management will be in place by Christmas, following which transformation activities will accelerate,” Machin said.

By comparison, sister brand Kmart achieved total sales of $970 million for the quarter – a rise of 4.6 per cent above the previous corresponding period.

While, comparable store sales decreased 1.2 per cent, the retailer revealed that – excluding the effect of the Toy Sale at the beginning of the quarter – comparable store sales increased 2.0 per cent.

Following the Toy Sale, the sales performance in everyday toys has been strong, reflecting a positive customer response to lower pricing and an improved range.

Kmart Managing Director Guy Russo said sales for the quarter were pleasing, with strong sales growth achieved across apparel and home categories. Within the apparel category, performance was particularly strong across childrenswear, underwear and sleepwear.

Sales in maturing categories such as video games, music and DVDs, however, continued to decline during the quarter.

“The quarter represented the fifteenth consecutive quarter of growth in transactions and units sold, and reflects Kmart’s continued focus on delivering low prices to families on everyday items,” Russo said.

During the period, Kmart maintained its commitment to refreshing stores with six store refurbishments completed. Kmart opened one replacement store, Indooroopilly in Queensland and temporarily closed one store during the quarter.

Commenting on the company's overall performance, Wesfarmers managing director Richard Goyder said he was generally pleased with the sales results, in particular the good performances of Coles, Bunnings, Officeworks and Kmart.

“Our continued focus on improving merchandise offers and value for customers was reflected in strong transaction and volume growth achieved across our retail businesses,” Goyder said.

“As foreshadowed, Target’s comparable sales performance was below last year, declining 5.2 per cent. Clearance activity of excess winter inventory during the quarter and the non-repeat of promotional activity in the same period last year significantly affected trading. During the quarter Target continued to strengthen its leadership team to oversee its longer term transformation with a number of key appointments made.

“Kmart’s total sales for the quarter were 4.6 per cent above last year, with comparable sales increasing 2.0 per cent when adjusted for the effect of the Toy Sale change. Transactions and units sold increased for the fifteenth consecutive quarter, with good performances achieved in core apparel and home categories.”

Goyder added that all of the retail divisions remain focused on providing customers stronger merchandise offers and better value, and were generally “well placed” for the important Christmas trading period.

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