Wesfarmers has announced about 167 Target and Target Country store will close or be converted to Kmart store and hubs.
Wesfarmers, which owns Target and Kmart brands, announced the structural change after a review of Target stores.
Managing director Rob Scott said to reduce Target's "unsustainable cost base" between 10 to 25 large Target stores would close as they were unsuitable for conversion.
About 50 Target Country stores would close.
Between 10 and 40 large Target stores would be converted to Kmart, subject to landlord support and 52 Target Country would covert to small format Kmart "hubs".
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The company has not announced which stores are on the chopping block or which will be converted.
Griffith boasts a Target and a Kmart store, while Leeton is home to a Target Country store.
Mr Scott said there was a limit to how many Kmart stores the company needs as people were generally willing to travel to a store.
He said redeployment opportunities would be offered to Target staff.
"We know this will be a tough day today for our Target team," he said.
"We expect to create more new jobs in Australia over the next year."
Mr Scott said it was "very much" a commercial decision the company was making.
There are currently 284 Target and Target Country stores.
Mr Scott said lease obligations and how successful individual stores were would inform the decision to close, convert or leave the store untouched.
He said they were not looking to have two Kmart stores located in the same shopping centre.
The company said the Target conversions would address gaps in the Kmart network.
The remaining store will be assessed with a further update expected in August. The company has indicated further store closures were expected.