Target’s new boss is going back to basics, scrapping in-store cafes and playgrounds introduced by his predecessor to focus on clothing and making international rivals like H&M “regret the trip Down Under”.

Guy Russo, who recently had the struggling Target chain added to his portfolio following his successful stewardship of Wesfarmers bedfellow Kmart, hinted at aping fashion retailers H&M and Uniqlo in order to knock them down.

Out go the new-look stores rolled out in NSW, Queensland and Victoria by Stuart Machin, who quit in April following allegations the discount department store chain artificially inflated earnings, to be be replaced by more own-label clothing.

“They know how to do volume, they know to do fashion; they do it with their own brand which I love,” Russo told analysts at a Wesfarmers strategy day on Wednesday.

“They don’t use any (other) brands. I’d love a clean model and H&M has a clean model: the only thing they’re not doing right is price.

“If I can clean my model up, they’ll regret making the trip Down Under.”

Russo was promoted into the newly created position of department store chief executive in February, tasked chiefly with the job of turning Target around.

He said he will scrap Target’s new store format, introduced about nine months ago, that features cafes, T-shirt printing stations and playgrounds so he can use all available space to sell things.

“There are playgrounds in the children’s area, so if customers want a playground I suggest they go to a playground and we’ll give that space back to the kids’ department,” Russo said.

“We are exiting some little bits of the strategy that I don’t have the capacity to roll out profitably and go back to being about fashion, apparel and soft home (furnishings).”

Russo said it was possible for Target and Kmart to both be successful in an $18 billion department store market, which is split between five major players.

The others are David Jones, Myer and Woolworths-owned Big W.

He wants Target to roll out high-quality fashion at low prices by reducing sourcing costs.

Russo reiterated plans to reduce the number of Target’s product categories but said the transformation was at its early stages and any changes most likely won’t take effect until June 2017.

Two Target stores have been transformed into Kmarts, with a further two set to undergo the same process.

Target has also recently dumped its annual Greatest Toy Sale promotion.

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