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Target have announced some massive changes.

Target is set to drop its prices and quit selling toys, pet care items and luggage as part of a sweeping overhaul to the struggling business.

The major department store chain will also dump in-store cafes and playgrounds. But clothing and soft furnishings? They’ll be seeing a big boost.

Target boss Guy Russo, also in charge of Kmart, announced some Target stores would be converted to Kmart or closed, but only a small proportion of them.

“We’ll be starting by exiting toy sales. Pets will go. Luggage will go. We want to increase the volume on apparel and soft home,” Mr Russo said, according to news.com.au.

“We’ll exit cafes and give that space back to apparel. There are playgrounds in the children’s area. If a customer wants a playground we’ll suggest they go to the playground.”

Here are the tricks retailers use to entice us to spend more. Post continues after video…

Mr Russo said Target was right now “pathetic” in terms of sales per square metre.

He said Target would lower prices to push through more volume, reduce inventory and options, increase stock of all-year basics and remove all loss-making items.

“We will not sell products that do not make money,” Mr Russo said.

“We’re lowering our prices to sell volume. Volume is critical to driving sell-through, lowering sourcing costs and further lowering prices.”

Mr Russo said he would like Target to be a “really great fashion volume retailer” like rival department stores, David Jones, Myer and Big W.

He also praised specifically the model of Swedish clothing giant H&M, but said “the only thing they’re not doing right is they’re overpriced” — a signal that Target fashion may be heading in that direction, except with lower prices. We’re not complaining.

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