While Target Bega closed the doors for the last time on Friday, the re-branded K hub store is planned to open on January 27.
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Kmart confirmed work inside the store had begun on Monday with the modifications expected to completed swiftly ahead of the open date.
"We can't wait to bring this new store to life and to showcase it to the local community on Wednesday, January 27 from 8am," a spokeswoman said.
Retail director of Kmart Australia and New Zealand John Gualtieri said customers would be welcomed by some familiar faces.
"21 Target team members have joined the growing Kmart family and we're thrilled to have been able to recruit 11 more team members from the local community," Mr Gualtieri said.
K hub is a Kmart branded store offering a smaller line of products than its big brother stores, but can also serve as a collection hub for Target or Kmart online orders.
"For now, we've taken our most popular Kmart products across kids, home and clothing; and brought them to life in a new way. A collection inspired for a smaller format store, with bigger convenience in mind," Mr Gaultieri said.
"Things may look a little different to what you'd expect from a Kmart store today. We're giving the store a 'light touch' make over for now, so that we're not inconveniencing the community with a long store closure. We want our customers to have easy access to the items they need...which is why we're focusing on speed to market. But we have big plans to evolve the look and feel of this store over time."
Mr Gaulteri said Kmart's mission was to provide easy and affordable access to everyday items.
"That's at the heart of everything we do! As a business we're committed to opening stores in new communities; and we can't wait to welcome the community of Bega to our brand-new concept K Hub store," he said.
"K hub customers will be able to pop in and visit our teams instore, or shop Kmart's entire product range online using home delivery or click and collect services. We'll be using our hub store as a collection point for online Target orders too; giving customers easy access to two of our key Kmart Group brands."
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