The largest retailers are anticipating a much bigger holiday season for sales and consumer spending compared with last year.
The COVID-19 pandemic put a huge damper on the 2020 holiday season, but the upcoming holiday season is expected to be a strong one for sales and revenue so retailers are amassing more inventory to meet an increase in demand.
Walmart (WMT) - Get Walmart Inc. Report owned Sam's Club is adding new holiday-oriented food items and doubling the size of packaged food products in addition to a newly launched wine delivery service.
Other big-box giants like Best Buy (BBY) - Get Best Buy Co., Inc. Report and Target (TGT) - Get Target Corporation Report are logging double-digit percentage increases in inventory. Target’s inventory rose to almost $11.3 billion in value in the most recent quarter, up more than 26% from the same period in 2020.
Supply chain delays have depleted store shelves over the past few months and retailers' ambitious inventory increases are seen as a better bet than the risk of less demand for the holiday season.