Cootamundra's mayor says the chances of saving the town's Target are slim.
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Target's owner Wesfarmers announced the store would be one of those to close permanently within the next financial year.
Mayor Abb McAlister has been campaigning to save the Cootamundra store, but said its future was "grim" after talks with a Wesfarmers representative.
Cr McAlister said he was told the store did not meet the requirements to be converted to a small Kmart, the alternative to closing down.
He said Wesfarmers were looking for store sizes of at least 1000 square metres for the new small-format Kmarts, which the company would prefer to put in towns far away from larger outlets.
The Cootamundra store is just 610 square meters and about an hour's drive from the Wagga Kmart.
"Sadly once these big companies such as Wesfarmers make a decision it is hard to get it changed," Cr McAlister said.
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