Is Lean Back?
With the COVID-19 pandemic, disruptions in the supply chain and shortages cast doubt on the viability of lean inventories. Facing a surge in demand in 2021, retailers tried to replenish their empty shelves with large orders and increased inventory capacity. As demand subsides and is expected to peak “softly” during the 2023 holiday season, Target has shrunk its inventory levels. The cost reduction has enabled the retail giant to show profits despite lower sales.