Target’s sales and profits have been in sharp decline since 2010. Once taking in annual sales of nearly AUD4 billion (USD3.75b), in fiscal 2014 that had been withered away to just AUD3.5 billion. Intense competition, a poor trading environment and hard choices made by Machin in his first year have smashed profitability. In 2010 pretax profit was standing at AUD381 million, but that is now sitting at AUD86 million – representing a stunning 77 percent contraction in earnings over four years.
Many believe that when Stuart Machin left Coles as operations director to run Target it was Wesfarmers’ last roll of the dice to fix the struggling chain.
But he says it’s a job he always wanted, and he believes Target one day will be great again.
(Source: The Sydney Morning Herald Online )