Target CFO discusses inflation and supply chain outlook

Target CFO Michael Fiddelke joined Yahoo Finance to discuss inflation, supply chain outlooks for 2022, and more. ‘We have a lot of levers we can pull in our business to combat inflation, and price is the lever we pull last, not first,’ said Target CFO Michael Fiddelke.

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MICHAEL FIDDELKE: We certainly are watching the inflationary cost environment closely. And we're focused on protecting value. We have a lot of levers we can pull in our business to combat inflation and price is the lever we pull last, not first. You can see the evidence of that in costs going up faster than retails at Target. And it's working. That traffic growth that we saw in Q4 is a testament to guests finding Target, more and more engagement over time.

Over the last couple of years, we've been making progress quarter by quarter. We're never happy when the guest finds an empty shelf but I feel like we've made good progress, as the pandemic has played out over the last couple of years. We feel really good about our inventory position as we head into 2022. Our inventories are up about 30% to last year. And so the teams have done a wonderful job navigating what's no doubt a complex supply chain, to have us in a strong inventory position, as we step into the year.