They are separate entities now, just owned by the same company (Wesfarmers), who made them more independant of each other. They are even encouraged to compete against each other, to improve market share and profit, hopefully at the expense of BigW. But I think it was more in case they sold of Kmart (their original plan when they bought the Coles Group), which would have been messy if Target and Kmart were still working as one company.