More than 150 Target stores are either to close altogether or be converted to Kmart stores in a major restructuring by owners Wesfarmers.
It is not yet known whether the Katherine Target Country store has been impacted by the decision.
Wesfarmers has been contacted for comment on Katherine.
The company replied this afternoon through a media spokeswoman saying the company was "communicating to our teams first and foremost today" and "so at this stage we are unable to comment on the Target Katherine store specifically".
The company told the stock market today it would shift its focus from the struggling Target brand to Kmart.
It is also to increase its online efforts in a move from bricks and mortar stores in town centres.
On its latest figures, there were 289 stores in Australia, more than those named in the statement for closure. They had a total of 13,000 employees.
The company today said "suitable" Target Country stores would be converted to Kmart stores.
Fifty of the small format Target Country stores are to close.
Wesfarmers managing director Rob Scott said: "With the exception of Target, Wesfarmers' retail businesses are well-positioned to respond to the changes in consumer behaviour and competition associated with this disruption."
"The reduction in the Target store network will be complemented by increased investment in our digital capabilities, following the continued strong growth in online sales across the Kmart Group."
The closures of the familiar brand stores will take place over the next twelve months.
The company said that Target employees in stores being converted to Kmart would be offered employment under the new brand. Other employees "will be given consideration for new roles".
Its statement said Wesfarmers and the Kmart Group "recognise that these actions will have a significant effect on a number of Target team members".
"All team members in Target stores scheduled for conversion to Kmart will receive an offer of employment from Kmart. Target team members affected by store closures will be given consideration for new roles created in Kmart and Catch as those businesses continue to grow."
The conversion of suitable Target Country stores to small format 'Kmart Hub' stores will leverage Kmart Group's learnings from trialling small format Anko stores in the United States while providing regional customers with increased access to a selected range of Kmart's home, apparel and general merchandise products, the company said.
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