Nov. 24, 2015—Target Corp. is expanding its inventory, but the retailer says it is doing it for the right reasons.
Target improved its in-stock levels by as much as 50 percent for many items in the third quarter, chief operating officer John Mulligan said, addressing a key concern the store chain has said was dragging down sales growth.
The result was a 4 percent increase in inventory in the quarter ending Sept. 30 that was greater than Target’s sales growth of 1.9 percent compared with the same quarter a year ago. Mulligan said the company has increased stocks of fast-turning items in stores to reduce the regularity with which those items need to be replenished.
The company also increased safety stock for some of its “key items,” he said.
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