Target Corporation (NYSE:TGT) is considering options that will help it tackle the problem of running out of stock.
The company claims that the problem has affected all its 1,800 stores, and its merchants are joining efforts to determine the number of different products that should be placed on shelves. The efforts will cater to a wide range of products from deodorants to water bottles. The company is also thinking of expanding its shelf space so that it can stock more products as well as teaming up with the suppliers to support enough shipping that matches the capacity of the shelves. The firm claims that this will reduce the products in the storage.
Target’s chief executive, Brian Cornell, stated that the process will be very vigorous and transformative. He spoke during an investor meeting that was held on Wednesday. Running out of stock is a common occurrence in retail stores and Target is therefore not the only retail firm that has faced such a situation. It often occurs due to the complex nature of the supply chains of major retail companies especially those operating on a national scale. It often ends up being very disappointing to customers when a retailer runs out of stock especially on popular items.
Target believes that lessening the variety of sizes, brands and flavors on the shelves will help simplify operations. The company reported that it will deploy workers to analyze the product categories and determine the different pack sizes and formats of its products that should be stocked. Mr. Cornell claims that it a matter of involving more efficiency in the main product for the retailer and placing more focus on products that have been given more priority such as apparel, stylish home products, and baby products.
During an interview with The Wall Street Journal, Cornell stated that the company will never gain fame for selling laundry soap or bottled water. It is, therefore, important to have ample stock, especially for the key items.