Dubbo mayor Ben Shields has confirmed Kmart will be replacing the Dubbo Target store in October.
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In a post on his Facebook page, Cr Shields shared a letter from Target Australia managing director Marina Joanou.
"We have...advanced plans to convert several of our larger format Target stores to Kmart stores and I wanted to let you know that our Target store in Dubbo will be converting to a Kmart in October 2020," the letter said.
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"Our team at Target Dubbo have been briefed on these plans and what it means for them, including the Group's commitment that team members in target stores scheduled for conversion to Kmart will be offered the opportunity to join he growing Kmart team."
Ms Joanou said she was confident Kmart would provide "numerous benefits" to the Dubbo community.
Speaking to the Daily Liberal, Cr Shields summed up his reaction in two words "woo hoo".
Although, he said it was a "bittersweet" moment.
"On one hand we desperately need Kmart and it's not just an immature want for a place to shop, we need Kmart to remain competitive and for our retailers to have the best retailers in Dubbo, but on the other hand, for me Target is also a good store," he said.
"To lose Target is actually a bit of a disappointment. Target was my very first job. I worked there after school.
"I remember the days Target used to be a really good retailer, it had really good things in there. It's actually quite sad to lose Target, but to have Kmart now after Dubbo has been screaming about it for so long is a good thing."
Cr Shields said he would have preferred for Wesfarmers to keep Target and build Kmart on another site.
But overall, it's great news for business.
"We have haemorrhaged too many customers to Orange over the years and we've slowly but surely clawed that back by putting a Bunnings in, a JB Hi-Fi in and a Aldi in. This is the next one, Kmart, and then the next piece of the puzzle needs to be a Harris Farm Markets," the mayor said.
"Dubbo's reason to exist is to service western NSW, all those little towns. We need those big retailers in order to remain competitive. I don't want people choosing to go to Orange or even Tamworth over Dubbo."