Target investing in supply chain to reach more customers

30 August 2018

Target has said it is investing in its supply chain to reach more customers.

John Mulligan, executive vice president and chief operating officer, said the retailer was modernising its supply chain to deliver new fulfilment options and increase in-store efficiency.

Speaking on an earnings call to investors, Mulligan said continuing work on the upstream supply chain would “dramatically reduce store workload associated with unloading and restocking over then next two years”.

Target has just released its second quarter earnings reporting sales of $17.6bn, a year-on-year sales growth of 7% for the quarter. The firm said this was its strongest second quarter performance since 2005.

Brian Cornell, chairman and chief executive officer, said the retailer was transforming its supply chain to put its stores “at the centre” of a network of fulfilment options. This was part of a wider set of investments to “make it easier and more inspiring” for customers to shop with the firm.

Mulligan also praised Target’s supply chain team for its response to an unexpected spike in sales. He said the retailer’s one-day July sale “far exceeded” expectations and that the supply chain teams “had to react and recover quickly” to meet the unplanned demand.

“I am really proud of how they responded adding to my confidence and our ability to accommodate peak demand in the upcoming holiday season,” he said.

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