Overshooting the Target

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Scarcity has been the story of the past year — and much of the past two. A store needs to predict demand ahead of time, and ever since March 2020, it has become impossible to predict the future based on the recent past, writes TPCarney.

In 2021, it became impossible to buy a car. In 2022, if you wanted to buy a home, you had to make an offer while standing in the foyer.

Target’s stock dropped 9% in a day, triggering another stock market selloff. Stock market selloffs are typical these days, but excess inventory is, to put it mildly, not typical these days. Walmart ended up in the same position. Both megaretailers reported in late May that they had stocked up more than they could sell.

 

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