The two Wesfarmers-owned businesses are merging and creating a $10 billion business.
According to news.com.au, the two stores will still keep their individual names and remain separate so the customers will not notice a difference.
The reports suggest that the merging will only affect offices, technology, and other backend processes.
However, Wesfarmers did confirm that there will be a “handful of redundancies”.
“The announcements today are an internal reorganisation of our support offices and there are no impacts to the Kmart or Target stores,” Kmart Group managing director Ian Bailey said in a statement.
“With customers now demanding value more than ever, this new operating model will unlock a new level of scale and productivity across both brands, so we can deliver even greater value to our customers in the future.
“For store networks and 50,000 store team members – it’s business as usual – as we continue to focus on providing the best value products to the thousands of customers in Australia and New Zealand who choose to shop at Kmart or Target every day.”