A spokesperson for the Kmart Group has confirmed Target will close on September 30, then reopen as Kmart on October 15.

Staff currently working at Target will have the opportunity to transfer to Kmart.

Wesfarmers confirmed Dubbo would be getting a Kmart last week.

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Initially the city was left off the list of locations where Target was either closing or converting to a Kmart store.

But in a letter to Dubbo Regional Council, Target Australia managing director Marina Joanou said the Dubbo store was changing.

"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.

The Kmart Group spokesperson told the Daily Liberal Target was transforming its store network and focusing on a stronger online business.

"Across the Kmart Group we want to build profitable and sustainable businesses and one of the ways we can achieve this is through optimization of our store network - we have made a significant effort to avoid store closures and retain our team by converting suitable Target stores to Kmart stores," the spokesperson said.

They did not wish to comment on whether the opening hours of the store would change.

The spokesperson said more information would be available closer to the date of Kmart opening.

In a post on social media, Dubbo Square said it was thrilled to be partnering with Wesfarmers to convert the existing Target store into Kmart.