The Target store in Maryborough will close and three others in central Victoria will be transformed into Kmart stores under a series of major nationwide changes to the brand.
Parent company Wesfarmers announced an overhaul on Friday morning to "address the unsustainable financial performance of Target" and boost the growth of Kmart.
It was revealed that 10 to 40 large-format Target stores would be converted to Kmart stores, 52 Target Country stores would become small-format 'Kmart hub' stores, while 10 to 25 large Targets and 50 Target Country stores would close.
A Target spokesperson confirmed the store in Maryborough would close completely.
Meanwhile, the Castlemaine and Echuca stores will become the smaller Kmart hub stores, and Woodend's Target will be transformed into Kmart.
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The future of the Bendigo store is unknown, as discussions with landlords are ongoing.
"All team members in Target stores scheduled for conversion to Kmart will be offered the opportunity to join the growing Kmart team, for other affected Target team members, we will work with them to identify and offer other redeployment opportunities in Kmart, Catch, Bunnings and Officeworks as these businesses continue to grow," a Target spokesperson said.
"We believe that Target has a future as a leading retailer in Australia and we know it is loved by so many, but a number of actions are required to ensure it is fit for purpose in a competitive, challenging and dynamic market, including a smaller number of stores and a stronger online business."
Maryborough has a Kmart store, although no other department stores.
The changes will take place over the next 12 months, although most will happen in 2021.
Wesfarmers managing director Rob Scott said the Target restructure would be accompanied by more investment in online offerings to customers.