Seller has sufficient stock for holidays
Brian Cornell, CEO of Target, is confident that the big box retailer will have plenty of goods this holiday season, despite industry supply chain complications that have raised fears that items could sell out quickly.
The inventory of Target increased in the last quarter compared to the previous year by 2.5 billion US dollar, Cornell said on Wednesday morning in an interview with Becky Quick of CNBC in the “Squawk Box”. The company bought goods early in preparation for the Christmas season and is aware of port delays, increased transport costs and other shipping restrictions.
“We will have access to this inventory, and at this point our stores will be ready for the school season, the college season … and we will be ready for the vacation,” said Cornell. “We have a lot of inventory in flux at the moment.”
Home Depot has already signaled how hot consumer demand for Halloween decorations will be this year. The do-it-yourself chain that sold out unforgettable last year from a 12-foot skeleton is bringing it back again this year along with a new version of the hot item. On Tuesday, the retailer said it was sold almost immediately through an early drop of Halloween decor.
Walmart also tried this week to allay analysts’ fears of impending supply shortages.
John Furner, President and Chief Executive Officer of Walmart’s US division, said during a conference call that the big box retailer has been proactively chartering ships and has already secured capacity for the third and fourth quarters. Walmart’s inventories were up 20% year over year in the most recent quarter, he said.
“Our consumers are excited about the holiday season,” Cornell told CNBC. “They’ll be careful, but they want to get together with friends and family.”
Target shares were down less than 2% in Wednesday afternoon trading, while Walmart shares fell less than 1%.