Westfield has revealed in planning documents lodged with Wollongong City Council that the centre's Kmart store will be replaced with another discount department store and a new supermarket.

The application, which outlines plans for minor internal alterations, says the reconfiguration will allow room for both the supermarket and new store.

But Kmart has insisted it is staying put.

The document did not set any time for the change.

"Kmart Warrawong is very much open for business," a spokeswoman for the discount chain said.

"If there are any changes regarding, this our team members will be the first to be informed."

Westfield moved quickly to ease concerns when contacted by the Mercury.

"Westfield Warrawong submitted a development application in January 2012 for a discount department store and supermarket, however there are no changes to the current retail tenancy mix at this stage," a spokeswoman for the shopping centre said.

"Westfield Warrawong is awaiting approval from council and will provide further information when available."

Rumours circulating that the space could be snapped up for a new Target store have not been confirmed or denied by either Westfield or Target itself.

However, a Target spokesman indicated the company would like to establish a presence in Wollongong's south in the future.

"Target Australia is certainly interesting in bringing a store to the Warrawong community, however we are unable to confirm any further details at this stage," the spokesman said.