Nikhil Nayar, senior vice president of hardlines at Target, talks about keeping shelves stocked, same-day services, and 2022 predictions in the Toy Book’s annual State of the Industry Q&A.
The Toy Book: How did Target make sure that shelves were stocked throughout the holiday season?
Nikhil Nayar: We knew guests were looking to shop earlier for a variety of reasons last year — whether it was to relish in the joy of the extended season or simply check items off their list sooner. And, as always, value was incredibly important to our guests, especially during the holidays. To ensure we were well-positioned to deliver a great guest experience, our teams planned and worked closely with our vendors and transportation partners to keep stores well-stocked and ready. Thousands of trucks made deliveries to Target stores each day to replenish everyday essentials and the season’s hottest gift items. Our inventory was up substantially over the same time last year. We also made big investments in our supply chain operations and stores-as-fulfillment-hubs model to serve our guests even faster and more efficiently.
TB: Same-day services (including order pickup, drive-up, and Shipt) grew nearly 60 percent at Target in 2021, on top of more than 200 percent the year prior. Do you think this consumer shopping trend will continue into 2022?
NN: Our same-day services have had tremendous growth over the past year — and we expect to see that trend continue. Our investments in our team and store operations over the years have positioned Target to help guests shop on their own terms. The convenience of these services is unmatched and provides a fast, easy, and safe experience for our guests. This past holiday season, we added several enhancements to our industry-leading, same-day drive-up and order pickup services to help make the experience even easier. We added more than 18,000 dedicated parking spaces for drive-up ahead of the busiest time of the year and introduced a new “Shopping Partner” feature to allow guests to send a friend or family member to pick up their order in case their plans changed.
TB: What are your predictions for the state of toy retail in 2022?
NN: This year, we’ll continue our investments in creating unique toy shopping experiences for our guests that make Target a destination for the hottest toys and games. Our strategic partnerships with popular brands, such as Disney, LEGO, and FAO Schwarz, bring excitement to guests, all at an incredible Target value. We’ll also continue to build upon inclusivity with a focus on diversity in our assortment and the vendors we work with. As we also celebrate the fandom and hobbies that span across multiple generations, Target will continue to innovate in this space and bring joy to guests across our toy aisles both in our stores and online.
This article was originally published in the February 2022 edition of the Toy Book. Click here to read the full issue!
