Works to convert the old Target Country Gunnedah site into a small-format Kmart hub are due to begin on January 18, with a planned store opening in early February.

"We will have specific information about recruitment and retention numbers in early January," a Kmart spokesperson said.

Gunnedah will be home to one of 50 K hub stores in Australia, which are being described as a "one-stop shop" which will allow communities to continue accessing budget items as well as serving as a click and collect outlet for online shopping.

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Shoppers will have access to some of Kmart's most popular products across kids, home and clothing, brought to them in a new way with convenience in mind.

The hubs will be bright and colourful with a "local feel" and will be an in-store collection point for orders online from Target and Kmart.

Kmart has also announced they will soon extend their online experience so customers can order on Catch.com.au and pick up items whenever it's convenient in store or have them delivered to your door.

Target Country has long been a staple provider for regional Australia but in May this year Wesfarmers announced that about 170 of the struggling stores would be either closed or converted into Kmarts across the country.

Moree's Target store will also convert to a K hub store, but Armidale and Narrabri's stores will close next year.