Discount department stores Target and Kmart continue to struggle in a volatile trading market, according to third quarter sales results for the 2012 fiscal year.
The figures detail a 4.4 per cent fall in sales for Target to $692 million, with comparable sales also down, by 6.1 per cent.
Sister brand Kmart fared slightly better, and recorded a 1.2 per cent rise in sales, with total sales hitting $813 million for the quarter.
However, both brands - owned by the Wesfarmers group – have experienced declines for the financial year to date.
Total sales for Target for the financial year to date have dropped 3.0 per cent, to $2.8 billion, with comparable store sales down 4.2 per cent.
Similarly, total sales for Kmart for the fiscal year to date declined 0.6 per cent to $3.1 billion, with comparable store sales also down, 0.6 per cent for the period.
Commenting on the results, Target managing director Dene Rogers admitted trading conditions were difficult, but said improving the profitability of promotions has been a key focus.
“Tough trading conditions continued through the quarter, particularly in our entertainment categories, such as electrical, general merchandise and toys, leisure and books,” he said.
Kmart managing director Guy Russo, however, said Kmart's customer base has responded particularly well to recent value-for-money initiatives implemented by the brand.
“Customer transactions and volumes continued to grow on last year, representing the ninth consecutive quarter of growth. A continued focus on inventory management and improvements in our store offer has driven improved performance across our everyday range and seasonal categories,” he said
“We remain committed to our strategy of providing the lowest possible prices on everyday items for families.”