Target has updated its inventory optimization plan to right-size its inventory for the rest of the year and create flexibility when serving shoppers in an ever-changing environment, the retailer announced.
“Target’s business continues to generate healthy increases in traffic and sales, despite sustained volatility in the macro-environment, including shifting consumer buying patterns and rapidly changing operating conditions,” said Brian Cornell, chairman and chief executive officer of Target Corporation, in a statement. “The additional steps we are announcing today will ensure that we deliver for our guests while driving further growth.”
To increase inventory efficiencies, the chain will markdown more prices, remove excess inventory, and cancel orders. Adding holding capacity near U.S. ports and working with suppliers to decrease lead times will help to stabilize and simplify the supply chain processes most affected by external volatility, according to the retailer. Price changing strategies will address the impact of high transportation and fuel costs.
Target also announced the acceleration of new sales forecast models, promotional plans, and cost expectations by category, along with other changes to help control costs, and build capacity at five of its distribution channels.
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