Wesfarmers Limited (ASX:WES) has updated on the review of Target, which include changes to the Target and Kmart store networks.
- The first stage of Target review has pointed measures to speed up the growth of Kmart & address the unsustainable financial performance of Target.
- WES would look at redeployment prospects in Kmart & other WES businesses. This would reduce the effect of these changes on Target team members.
In FY2020 results, the company anticipates:
- Restructuring costs & provisions in Kmart Group in between ~$120 to $170 million before tax.
- Non-cash impairment in Kmart Group would lie in between ~$430 to $480 million before tax.
- Non-cash impairment in the Industrial & Safety division of ~$300 million before tax.
- Pre-tax gain on sale of 10.1% interest in Coles of $290 million.