New York — As the home department’s sparse shelves demonstrate, Target has depleted its excess inventory, according to CEO Brian Cornell.
Earlier this year, as consumers began to shift their spending priorities, the company announced it would reduce and eliminate merchandise in shrinking categories. In the summer, it also slashed more than $1.5 billion from fall season revenue in discretionary categories.
All of this put the retailer in a strong position for the fourth quarter, Cornell said at Yahoo Finance’s 2022 All Markets Summit yesterday.
“For Target, we put this inventory issue behind us and now we can focus on execution, delighting our customers. [and] get ready for the big holidays,” he told Yahoo Finance Live presenter Brian Sozzi. “We are thrilled to be ready to play for the holiday season.”
Despite recession-related concerns, Target continues to see healthy traffic in stores and online, Cornell said. Target buyers are particularly focused on seasonal events and celebrations, which he said sets the company up for a strong end to the fiscal year.
“We have delivered solid compositions throughout this year. We expect this to continue over the festive period,” he added.
Cornell recently extended its contract with Target for another three years. Its plans include building new stores and continuing store renovations.
“I think it’s going to be another chapter of growth for our business,” he said.