August 19, 2021: -Target CEO Brian Cornell is confident the big-box retailer will have plenty of merchandise this holiday season, despite industry-wide supply chain complications that have sparked worries that items could quickly be selling the stock.
Target’s inventories increased $2.5 billion in its latest quarter compared to this year, Cornell said in an interview with CNBC Becky Quick on Wednesday. The company has been buying goods early in preparation for a blowout holiday season and is aware of port delays, heightened transportation costs, and shipping constraints.
“We’re getting access to that inventory, and the stores are at this point ready for the school and college season and will be ready for the holidays,” Cornell said.
Home Depot has signaled how hot consumer demand will be for Halloween decorations this year. The home improvement chain, which memorably sold out of a 12-foot skeleton in the previous year, brings it back again this year along with a new version of the hot item. The retailer said it sold through an early drop of decor immediately on Tuesday.
Walmart also this week tried to quell analysts’ fears around looming supply constraints.
During a conference call, John Furner, president and chief executive officer of Walmart’s U.S. division, said that the big-box retailer had been proactively chartering shipping vessels and secured capacity for the third and fourth quarters. Walmart’s inventories in its recent quarter were up 20% year over year, he said.
Target shares fell less than 2% in premarket trading Wednesday, while Walmart’s stock dropped less than 1%.