Target and Walmart Are Victims of Their Own Inventory Success

Almost overnight, retailers have gone from seeing their profits stuck on a ship in the Pacific to languishing on the shelf.

Walmart Inc. and Target Corp. are experiencing the downside of successfully navigating supply chain disruptions and keeping their stores well -stocked. So, on top of escalating costs for things such as labor and fuel, both retailers were caught off guard by a rapid retrenchment among consumers at a time when they were carrying a higher than usual level of inventories.